US Tariff Hikes Ripple Through Odisha's Seafood Industry

The seafood industry in Odisha, India, is facing significant challenges due to a new tariff hike imposed by the United States. The hike directly affects 62 seafood processing entrepreneurs and indirectly impacts around 25,000 prawn farmers in the region, according to a state official. This move comes as a blow to the local economy, which heavily relies on seafood exports.

State Fisheries and Animal Resources Minister, Gokulananda Mallik, reported in a legislative session that the export of fish, prawn, and other marine products has been partly disrupted. The disruption is a result of the steep 50% tariff on Indian goods, which went into effect last month. This figure includes an additional 25% duty already in place and an extra 25% set as a penalty for India's purchases of Russian crude oil and military equipment.

To counter the adverse effects, the Indian government is exploring alternative markets such as Japan, South Africa, the UK, Russia, Australia, and Southeast Asia. Minister Mallik highlighted that 24.5% of marine exports from Odisha are shipped to the US. Despite the new tariff challenges, marine products from Odisha were exported to 18 countries in the 2024-25 financial year, with a notable quantity making its way to the US prior to the new tariff impositions.

(With inputs from agencies.)