India charts new course for shrimp exports amid US tariff woes

India, the world's second-largest shrimp exporter, is strategically shifting its focus to alternate markets as it faces a 50% tariff from the US, its largest export market.

"We need to diversify and reduce our over-dependence on the US for the long term," Rajesh Agarwal, commerce secretary designate, special secretary in the Department of Commerce and lead trade negotiator with the US, said at the India International Seafood Show 2025 conference held in the week ended Sept. 28.

The total effective tariff on Indian shrimp exports to the US now stands at 58.26%, which includes new tariffs of 50%, existing antidumping duties of 2.49% and countervailing duties of 5.77%.

In financial year 2024-25 (April-March), 42% of India's frozen shrimp went to the US, according to the Marine Products Export Development Authority.

"Our mediations are on track, and we are engaged with each other. We will have a deal much sooner than expected," Agarwal said.

"Putting all our eggs in one basket is risky," Agarwal added. "Domestic and global changes can impact any one trading partner, so diversification is essential for long-term growth."

Exporters echoed the need to move beyond the US.

Seafood Exporters Association of India President Pawan Kumar G. said, "We export to 132 countries, but focus only on four or five. That has to change."

Processors and exporters are looking beyond the US, targeting markets in Europe and Southeast Asia, said Willem van der Pijl, co-founder and managing director of the Global Shrimp Forum. They are also investing in capacity for value-added products such as cooked, marinated and breaded shrimp.

In contrast, farmers are focused on growing the domestic market, van der Pijl said.

The need to improve the composition of India's shrimp export basket was also repeatedly highlighted.

"Currently, only 10%-12% of our seafood exports are value-added, which is very low compared to countries like Vietnam, Thailand and China," Agarwal said.

"Moving from primary products to value-added products will make our supply chain more resilient and create more livelihoods within India," Agarwal added. "Sanitary and Phytosanitary measures pose challenges globally, but value addition helps mitigate these biosecurity concerns. We should aim to increase value-added exports to over 25% in the next five years."

"Market diversification and value addition present major growth opportunities for India," said Dr. J.S. Reddy, additional director at the Export Inspection Council.

Exporters said ramping up value-added products is possible with the right technology and competitive costs, but securing consistent buy-back remains a challenge.

Domestic consumption was also seen as a longer-term solution.

"We are a population of 1.4 billion, with 70% consuming non-vegetarian food. Shrimp can meet the protein needs of our increasing population," said Mahesh Madhukar Shinde, regional manager at Avanti Feeds.

Productivity and diseases also posed concerns. Farmers have been struggling with rising costs and falling margins, and production has stagnated in recent years.

"The primary challenge today is to get this tariff behind us," said D. Ramraj, member and former president of the Society of Aquaculture Professionals and the All India Shrimp Hatcheries Association. "There is talk of focusing on the domestic market and diversifying markets, but I think it is not going to happen overnight. It is going to take a lot of time. That is why we need to negotiate and getting a trade deal with the US is very important for us."

Platts, part of S&P Global Energy, assessed peeled, deveined, tail-on shrimp FCA India at $6,504/metric ton on Sept. 29, unchanged from the previous assessment.