Compliance risks rising for India’s shrimp sector amid new FTAs: MPEDA chairman

India's new trade agreements offer expanded access for shrimp exports, but compliance, biosecurity and traceability requirements are tightening fast and could limit the benefits unless the sector adapts, D V Swamy, chairman of the Marine Products Export Development Authority, said at the Aqua India 2026 conference on Jan. 30-31.

Swamy said he supports strengthening the domestic market to reinforce the sector's base, but stressed that free trade agreements with Australia, the UAE, the EU and the UK come with rising expectations.

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"Tariff benefits alone do not ensure growth," he said, pointing to higher sanitary, phytosanitary, biosecurity and sustainability standards across major importing countries.

Quality and antibiotic-related rejections remain a significant challenge. Swamy noted that 50% of Indian shrimp consignments face checks in the EU and UK, and Japan inspects 100%, meaning tariff advantages from FTAs will not translate into export gains unless residue issues are addressed. The shift of exporters toward the EU following US tariff hikes has further increased scrutiny.

Biosecurity requirements are also tightening in markets such as Saudi Arabia, Australia, Thailand, Indonesia and South Korea, where listed diseases must be tested before shipment, according to Swamy.

"Testing for both antibiotics and diseases increases transaction costs and limits access," he said.

Traceability is emerging as a major pressure point. Swamy flagged the US Food Safety Modernization Act's new traceability regulation, effective from July 2028, as a challenge if India aims to retain access to the US market.

The MPEDA chairman added that social responsibility concerns, including allegations of forced labour, affect the sector's image.

Swamy called for a shift from a volume-focused approach to a value-driven strategy, emphasising productivity gains, sustainability, robust biosecurity, traceability, and responsible aquaculture practices.

"Policies and technology mean little without compliance," he said. Formed under India's Ministry of Commerce and Industry, the MPEDA aims to promote Indian marine product exports.

Platts, part of S&P Global Energy, assessed peeled, deveined, tail-on shrimp on an FCA India basis at $7,491/mt on Feb. 2, up $41/mt from the previous assessment.