Andhra Pradesh’s shrimp farmers are bracing for the impact of US tariffs that will touch 59.72% after US President Donald Trump announced 25% additional tariffs over and above the 25% announced earlier, as well as the 5.76% countervailing duty and 3.96% anti-dumping duty.
“If the US decides to go ahead with the additional 25% tariffs, many shrimp farmers will be forced to close down or cultivate other species that do not yield such high profits,” said S Lal Mohammad, joint director (aquaculture) of the Andhra Pradesh Fisheries Department.
“Medium and big farmers produce larger shrimp, known as 30-count or 40-count, referring to the number of shrimps per kilogramme. About 90% of the large shrimp are exported to the US and sell for Rs 350-400 per kg. Due to the heavy tariffs, exporters will avoid purchasing these,” he explained.
India’s seafood exports in 2024-25 reached $7.38 billion, amounting to 1.78 million metric tonnes. Shrimp formed the most significant component, accounting for 92% of India’s seafood exports, and the US market alone accounted for over 40% of India’s total shrimp exports.
With extra tariffs being imposed, farmers would likely move towards growing smaller shrimp, such as the 100-count variety that sells for around Rs 220-230 per kg, which are generally not sent to the US, said Mohammad.
Unless the tariff issue is resolved immediately, the whole sector will come to a standstill, secretary (Andhra Pradesh region) of the Seafood Exporters Association of India, D Dileep, said. “We are talking of closure of operations of not only aqua ponds and farms, but also of hatcheries, shrimp processing units, packaging units, cold storages, and ice factories,” he said.
Bracing for impact
According to the government, there are around 6.5 lakh aquafarmers in Andhra Pradesh, and Dileep said that apart from them, around 30-40 lakh others involved at various stages of the industry could also face a dent to their livelihoods. He called on the state government to announce a package to help the industry absorb the impact.
Andhra Pradesh produces sixty per cent of India’s shrimp export. “The US is a predominantly premium market. We supply to all its major super stores, and 40% of the shrimp in those stores are from Andhra Pradesh,” Dileep said.
While the bulk of shrimp is exported from Andhra Pradesh, the other major supplier, Odisha, is similarly preparing for rough weather ahead. While Odisha exports seafoods, particularly shrimp, worth Rs 2,000 crore annually, over 30% consignments go to the US, industry sources said.
Tara Ranjan Patnaik, chairman of Falcon Marine Exports, said the supply chain is already showing signs of disruption. The sector generates direct and indirect employment for around 15 lakh people in Odisha.
Dileep pointed out that apart from the tariffs, the aquaculture industry is also facing particularly stiff competition from Ecuador, which is eating into India’s share in the US market and is the other major supplied of shrimp to the country, apart from Indonesia, Vietnam and Thailand.
“Ecuador is nearer to the US, and the tariffs are only about 15%. It enjoys a huge advantage in terms of pricing, and it will be difficult for us to regain the US market if we lose out now,” Dileep said.
Of the 241 aquaculture exporters in the country, 171 are based in Andhra Pradesh.
The owner of Bhimavaram-based Pramadha Marine Exports Limited, Y Prasada Rao, said that due to various tariffs, most exporters are already operating at a 5-6% profit margin.
“Only the large exporters with big brand value operate with 10% margins. The rest get 5-6% profits. Only about 20% of aqua product exporters are able to export to the US, and the rest export to the EU, China, Russia, Vietnam, etc. With this increase in tariffs, the cost of products increases drastically. No one in the US market will purchase Indian aqua products at such prices. Due to this, exporters are facing tremendous losses. All operations are at a standstill,” Rao said.
“If we have to continue exporting, the entire burden has to be passed on to the aquafarmer. We have to purchase shrimp at reduced rates to offset the tariffs. Today, the situation is such that no exporter is willing to pay Rs 260 per kg for the small 100-count shrimp. All exporters have stopped purchases or taking orders till August 11, or at least till the issue is resolved and there is clarity,’’ Rao said.
An official of the Seafood Exporters Association of India stated that, as exporters are forced to increase prices, shrimp and other aqua products from India would become more expensive than those from competing countries.
“To put it simply, a shipping container with Rs 2 crore worth of aqua products will be charged more than Rs 1 crore in tariffs, increasing cost drastically. No buyer will purchase that, especially when other countries like Vietnam with lower tariffs can export,” said Venkata Kishore of SJ Marine Exports.
Awaiting clarity
Harsha Raju, a medium-level farmer and partner in Kolleru Aqua Farm in Eluru, said that since April, there has been a crop holiday situation. “When the tariffs were announced first in April, it was a big blow to all aqua farmers. Traders and exporters are not offering good rates because they are taking the tariffs into consideration. We invest up to Rs 6 lakh per crop for shrimp, and if we do not get back even the investment, it is a huge loss. Right now, there is a crop holiday. We are all waiting for more clarity, and keeping an eye on what the Centre and state government do,” Raju said.
Vice chairman of Andhra Pradesh’s State Aquaculture Development Authority, Anam Venkata Ramana Reddy, said the state government is exploring various options to help aquafarmers. He said that about 6.5 lakh aquafarmers cultivate various sizes of shrimp, fish like catla, rohu, and seabass, as well as crabs.
“In 2023-24, aquaculture in Andhra Pradesh was cultivated in 5.7 lakh acres, out of which approximately 3 lakh acres were only for shrimp. As many as 8-10 lakh tonnes of shrimp and fish products were produced. Erstwhile undivided districts of Krishna, East Godavari and West Godavari account for 60% of the production,” Reddy said.
“We are holding discussions with aquafarmers on how to help them absorb the blow. Some farmers will stop cultivating the export variety and go for smaller shrimp, which will bring fewer profits. We are also looking at increasing exports to the European Union and Russia. We are encouraging domestic consumption, not only in Andhra Pradesh but also in other states,” Reddy said.
Andhra Pradesh is also setting up the AP Prawn Producers Company, which will purchase shrimp from farmers and market it in smaller packets, like 50 gram and multiples of that, aimed at all income groups. “The 50-gram packet will cost about Rs 50 and will have eight-nine pieces. It is affordable considering the increasing price of eggs,” Mohammad said.
Anticipating the tough times ahead, Chief Minister N Chandrababu Naidu had in April written to the Centre to shield the state’s aquaculture products and aqua sector from the heavy tariffs being levied by the Trump administration.
And earlier this month, he said at an event, “My government is providing support to aqua farmers by providing them electricity at Rs 1.50 per unit. The increase in tariffs by the US will burden aqua farmers in the state. We have taken it into consideration, and we act on it.”
India’s seafood exports in 2024-25 reached $7.38 billion, amounting to 1.78 million metric tonnes. 
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