Steep US Tariffs Shrink India's Shrimp Export Prospects

Indian shrimp exporters are bracing for a challenging financial year ahead as revenues are expected to drop by 12% in 2025-26 due to newly imposed steep US tariffs, effective August 27, a report by India Ratings and Research (Ind-Ra) reveals.

The United States, a pivotal market occupying 41% of export volume and 48% of export value for India's frozen shrimp in FY25, has introduced a 50% reciprocal tariff, translating to a 58% effective tariff rate including anti-dumping and countervailing duties. This shift is predicted to erode India's competitive edge against countries like Ecuador, Vietnam, and Indonesia.

Ind-Ra warns that this tariff elevation will pressure India's shrimp export volumes, compress margins by around 150 bps year-on-year in FY26, and strain working capital. Exporters are pivoting towards domestic and non-US markets such as China, the EU, Japan, and the UK, but these offer lower prices and limited scale.

(With inputs from agencies.)