The country's shrimp export industry is facing a serious crisis due to US tariffs. The Seafood Exporters Association of india (SEAI) has sought emergency financial support from the government for the industry in view of the tariffs imposed by Donald Trump.
The association has contacted the Ministry of Commerce and industry and said that the industry is facing many difficulties due to US tariffs. The association has appealed to the government for a 30 percent increase in working capital through cheap loans, margin compensation through interest support and a 240-day loan repayment waiver for pre- and post-packaging operations.
What did SEAI General Secretary K N Raghavan say?
SEAI General Secretary K N Raghavan said that there is a serious disruption in shrimp exports worth about two billion dollars. He further said that the US has increased the retaliatory duty from 25 to 50 percent. india exported $2.8 billion worth of shrimp to the US in 2024 and has exported $500 million worth of shrimp so far this year.
Raghavan said the new duty has made indian seafood products much less competitive than those from China, vietnam and Thailand, which are subject to US duties of only 20-30 per cent. He warned that these Asian competitors will grab US market share by reducing prices, while indian exporters cannot divert existing consignments as it will attract an additional 40 per cent penalty for contract violations.
Raghavan said, "The only way is to explore five new markets, but it will take time. For example, the Free Trade Agreement (FTA) with britain has been signed, but its implementation will take time." The duty hike is a threat to one of India's largest agricultural export sectors. The sector employs millions of people in coastal states and contributes significantly to the country's foreign exchange earnings.
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