US tariffs push India's shrimp sector to focus on boosting domestic demand

With steep US tariffs slashing demand for India's shrimp exports, top-producing state Andhra Pradesh is weighing a domestic promotion drive to help farmers navigate market uncertainty.

The US has imposed back-to-back tariffs on imported shrimp from India, with an initial 25% duty followed by another 25% effective Aug. 27.

Prices have been reflecting the pressure on India's shrimp market. Platts, part of S&P Global Commodity Insights, reported that raw material prices in Andhra Pradesh dropped by Indian Rupee 15-25/kg ($171-$285/mt) day over day on Aug. 28 with farmgate prices unlikely to recover until export demand stabilizes.

Exporters have acknowledged that "buyers are in no position to make purchases at 50% import tariff," warning India could effectively be priced out of the US market for the remainder of 2025. At the export level, Platts assessed peeled, deveined, tail-on (PDTO) shrimp FCA India unchanged at $6,974/mt on Aug. 29.

Andhra Pradesh looks inward

Talk of a coordinated push to boost domestic shrimp consumption in Andhra Pradesh, which supplies over half of India's shrimp exports, has been circulating for months. In April, Andhra Pradesh Fisheries Minister K. Atchannaidu said aqua farmers, traders and exporters would form a National Prawn Coordination Committee, modeled after the National Egg Coordination Committee, to promote the nutritional value of shrimp and build local demand.

The NPCC is proposed to bring together various associations, including representatives from aquaculture and shrimp farming organizations, such as the Andhra Pradesh Prawn Farmers Federation and the Seafood Exporters Association of India, among others.

That initiative has now taken shape as the Andhra Pradesh Prawn Producers Coordination Committee, whose proposal was unveiled at the first executive meeting of the Andhra Pradesh State Aquaculture Development Authority on Aug. 13, with the goal of reducing vulnerability to export shocks.

With the US accounting for over 40% of India's shrimp exports, a long-term shift toward domestic consumption may be unavoidable.

Beyond Andhra Pradesh, there is a broader push across India to anchor domestic seafood demand. Maharashtra Fisheries Minister Nitesh Rane framed the tariff shock as an opportunity to expand India's internal seafood market.

Reiterating the government's "Vocal for Local" vision, Union Minister of State for Fisheries, Animal Husbandry and Dairying Shri George Kurian said at the Seafood Exporters Meet 2025 on Aug. 11 that "strengthening domestic markets would create fresh avenues for fishers and farmers, especially in the face of global tariff challenges."

The 'egg strategy'

Andhra Pradesh officials look to the past as a road map for the shrimp sector's future, with the NECC, established in 1982, as a template.

A 2023 study found that NECC-led coordination helped double egg production within a decade, from about 822,000 mt in 1984-85 to 1.5 million mt in 1995-96. Output has surged to more than 6.7 million mt by 2020-21, underscoring how marketing campaigns and supply-chain coordination can rapidly transform domestic consumption.

The idea also resonates with global trends. Mexico's avocado industry famously turned guacamole into a household staple in the US through years of sustained branding.

More recently, shrimp exporters have formed the Global Shrimp Council to push consumption in key markets. The council, supported by over 70 members as of March, unveiled its first campaigns in 2024 and is planning a $2 million global advertising drive across the US and Europe.

"The consumer is more interested in the nutritional and cooking value of shrimp, and not the individual differences of each brand," Miguel Bárcenas, a consultant who helped launch the Avocados from Mexico campaign, told Platts in March. The council hopes to replicate that success for shrimp, although questions remain about funding and scale.

Outlook remains uncertain

The Andhra Pradesh initiative is in its early stages, with details yet to be finalized. Whether an egg-style campaign can deliver a structural shift in consumption is uncertain.

Industry participants caution that funding, consumer awareness and the premium positioning of shrimp versus other proteins could all weigh on execution. Still, with India's dependence on the US market exposed, the push for domestic demand is increasingly viewed not as an option, but as a necessity.