UK-India trade pact boosts outlook for Indian shrimp exports, eliminates tariffs

The recent UK-India trade agreement is expected to give a significant boost to Indian shrimp exports, as the deal eliminates tariffs that previously disadvantaged Indian shrimp producers in the UK market, sources told Commodity Insights on May 7.

Until now, UK buyers paid around a 4.2% tariff on Indian frozen shrimp. The newly established treaty abolishes the tariff, paving the way for increased demand from British buyers for Indian shrimp.

"This is going to benefit both buyers and suppliers," said an exporter based in Andhra Pradesh. "UK buyers used to choose Vietnam over India due to the tariff gap. Now, with no duty, this will boost India's shrimp trade with the UK."

An edge over competing origins

According to UK HMRC data, India accounted for around 26% of the UK shrimp import market in 2024, achieving a record high in 2023 with approximately 14,500 mt valued at $118 million.

However, Ecuador has been steadily increasing its presence, delivering 10,638 mt of shrimp to the UK in 2024—up from just 3,880 mt in 2019—while Indian exports dipped to 12,048 mt during the same period.

Ecuador and Vietnam have steadily grown their UK footprint, the zero-tariff access could help Indian exporters regain lost market share, especially as the UK remains a net importer of warmwater shrimp.

UK buyers' pivot toward cheap Indian semi-processed formats like PDTO and peeled shrimp may influence broader European demand, especially amid rising interest in convenience. European countries like France could also seek better deals on Indian supply, as demand for HOSO formats remains flat.

Platts assessed HOSO shrimp CIF Europe at $5,150/mt on May 7 for 30–40 count/kg delivered at Le Havre—down $125/mt from April 22

Exporters believe the tariff cut will help recapture market share lost to Ecuador and Vietnam in recent years.

Positive move for Indian shrimp amid US tariff concerns

"Although the UK is not a big market as compared to the US and Europe in terms of shrimp imports, a zero tariff is going to slowly incentivize suppliers to increase trade with the UK. Korea is also a good market for Indian shrimp; however, they levy a 25% import duty. On the backdrop of uncertainty amid US tariff pause, the UK in the long term will be a prospective market for Indian shrimp suppliers", said a major India-based Shrimp exporter.

They also added that the UK is a net importer of these seafood products, with its top sourcing origins being Vietnam and India.

Platts assessed peeled, deveined, tail-on shrimp FCA India at $7,222/mt on May 7, $34/mt lower on the day and up $123 up on the month.

The new trade terms are seen as part of a broader move by the UK to deepen economic ties post-Brexit, with seafood among several agri-food sectors likely to benefit from lowered barriers.

Industry watchers say the impact could be visible in trade flows over the second half of 2025.