The Indian shrimp farming industry has experienced robust growth over the past two decades, fueled by strong demand from the US. However, this sector now faces a significant shock as former US President Donald Trump imposed high tariffs on imports from New Delhi.
Andhra Pradesh, India’s largest shrimp-exporting state, is witnessing farmers losing a substantial portion of their profits. Exporters have reduced procurement prices by about 20% after Washington slapped a 25% tariff on Indian goods, with an additional 25% expected from August 27 as a penalty for India’s purchase of Russian oil.
“I’m considering switching to fish farming. At the current prices, I can’t repay my family’s debt of almost $46,000,” said V. Srinivas, a 46-year-old farmer from Veeravasaram village.
The US is the largest market for Indian shrimp, with customers including major supermarket chains such as Walmart and Kroger. Last year, India’s seafood exports reached $7.4 billion, with shrimp accounting for 40% of that figure. However, many orders from the US have now been put on hold as buyers are reluctant to bear the high tariff costs.
Meanwhile, Ecuador, India’s direct competitor in shrimp exports to the US, faces a lower tariff rate of 15%. This gives the South American country a competitive edge. “This could be an opportunity for us if India pulls back,” said Jose Antonio Camposano, President of Ecuador’s National Fisheries Chamber.
In Andhra Pradesh, approximately 300,000 farmers are engaged in shrimp farming. Many are considering switching to alternative models such as fish farming, vegetable retail, or small businesses to weather the crisis, while others choose to wait it out. “Usually, the profit margin is 20-25%. Now that’s completely gone,” said Gopinath Duggineni, a local union leader in Ongole.
The Indian shrimp industry is also exploring export expansion to other markets such as China, Japan, and the UK. However, according to the Marine Products Export Development Authority, market diversification cannot happen overnight.
This situation reflects the far-reaching impact of Trump-era US tariff decisions, which not only disrupted global trade but also severely affected the livelihoods of hundreds of thousands of Indian farmers.
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