Trump Tariff On Seafood Exports Put Aqua Farmers In The Lurch

With export volumes dipping and local prices plunging by up to 15%, the move threatens the livelihoods of nearly eight lakh people and jeopardizes a key Rs 6,000 crore trade. As exporters seek urgent government intervention, the industry fears losing ground to global competitors like Ecuador, unless diplomatic efforts succeed in rolling back the Trump tariff

Seafood exporters from India, mainly the aqua farmers from Andhra Pradesh who contribute a major share in the total exports to the United States have pressed the panic buttons with the enforcement of 26 per cent tariff levied by the Trump Administration.

Andhra Pradesh, which is considered the aqua capital of India contributing almost 40 per cent of total exports, is already witnessing a price drop as the number of consignments to the American ports is drastically falling due to fears over hefty tariff imposed by President Donald Trump from the midnight of April 5.

America is the largest importer of Indian shrimp, mainly the aquacultured Vannamei (white-leg shrimp) known for its price advantage and culinary taste with imports standing at $2.55 billion, accounting for 34.53 per cent share. Among all the seafood exports, frozen shrimp accounts for 91.90 per cent.

"We have been facing up to 8 per cent anti-dumping duty earlier. Now with the levying of 26 per cent additional tariff, the Indian exporter is being forced to pay up to a whopping 34 per cent on export consignments worth Rs 6,000 crore entailing a huge burden on us," K Anand Kumar, Andhra Pradesh chapter president of Seafood Exporters' Association of India, told Bizz Buzz.

A delegation from the industry has already sought the intervention of Union Finance Minister Nirmala Sitharaman. Another team is expected to meet her next week to impress upon the Trump Administration to reconsider its decision.

There is fear that if the tariff imposition continues, it may benefit countries like Ecuador, who attract only 10 per cent tariff. "At present we are keeping our fingers crossed as many have stopped sending consignments fearing that the new tariff will come into effect on them," an exporter said, seeking anonymity. However, it is said that there is exemption on containers carrying seafood in transit for next few days.

Prices in the local market for shrimp have fallen by 10 to 15 per cent. Vannamei 30 count cost has come down to Rs 400 from Rs 460 with the farmers fearing further fall if the US did not put on hold or withdraw the implementation of the new tariff known as Trump tariff. Its enforcement has come at a time when the harvest season for shrimp is starting from April to July, when the exporters get a bumper production.

An estimated five aqua farmers raise Vannamei cultivation in an area of four lakh acres with the highest in the range of one lakh acres each from Krishna, East and West Godavari districts. It is a major contributor to the GDP. It provides direct and indirect employment in aqua farms and hatcheries to nearly eight lakh people.

Narasaraopet MP Sai Krishna Devarayulu recently raised the issue in the Parliament and Andhra Pradesh being largest exporter, the Trump tariff has pushed the farmers to a distress situation and sought the intervention of government of India to convince the US administration to withdraw the tariff on seafood exports from India immediately.