India's shrimp exports unlikely to be supported by $5.1 bil government relief: sources

Indian shrimp exports are unlikely to be supported by New Delhi's $5.1 billion relief announcement in the short term, multiple market participants told S&P Global Energy on Nov. 14, as the plan lacks clarity on sector-wise allocations.

According to some major India-based shrimp exporters, the seafood industry remains uncertain about how much of the relief package will be directed toward the shrimp industry. As a result, Indian shrimp supply and prices are unlikely to gain from the announcement in the coming days.

"[The relief plan] is not a direct package for India's shrimp industry, and details are still unknown," said a Visakhapatnam-based major shrimp exporter. Another leading shrimp exporter, also based in Visakhapatnam, expressed uncertainty on the Nov. 12 announcement.

"We are waiting for details on how much the shrimp industry benefits from this plan," the exporter said.

Mirroring market sentiment, Platts, part of Energy, assessed peeled, deveined, tail-on shrimp FCA India, 31-40 count/lb, at $7,055/mt on Nov. 13, down $50/mt day over day.

Relief announcement

On Nov. 12, Information Minister Ashwini Vaishnaw said that India's Cabinet approved Rupees 450.6 billion ($5.1 billion) in spending to support local exporters, including Rupees 200 billion in credit guarantees on bank loans. The relief plan includes the allocation of Rupees 250.6 billion over six years for affordable trade finance for small exporters, logistics and market support, under an export promotion package to help offset the impact of recent US tariff hikes, the minister said.

The labor-intensive Indian shrimp export sector, which is the world's second-largest, brings in over $5 billion annually and is the hardest hit amid US tariffs, market sources said. The US is the world's largest shrimp importer and buys nearly half of India's shipments of roughly 1.8 million mt every year.

US President Donald Trump imposed a 25% reciprocal tariff on Indian imports effective Aug. 7 and an additional 25% "penalty" tariff from Aug. 27. The cumulative tariff, including antidumping and countervailing duties, on Indian shrimp rose to 58.26% by the end of August.

The tariff levied on Indian shrimp has begun to pressure the export volumes. Total vannamei shrimp exports from India declined 5% year over year to 44,932 mt in August, data from the Ministry of Commerce showed Oct. 22. Exports to the US declined 45% month over month and 47% year over year to 12,066 mt in August, the data showed.

Plan remains hazy

While New Delhi has realized that the US tariffs have had a sizable impact on the country's export sector, especially those dependent on American purchases, the $5.1 billion relief announcement has been received with caution by some shrimp industry stakeholders.

"We are awaiting the full draft of the government order," said KN Raghavan, secretary general of the Seafood Exporters Association of India.

Most India-based shrimp exporters remain unsure of the announcement and are seeking details on how much of the $5.1 billion package will be directed to the shrimp industry, market sources said.

Platts has emailed the Ministry of Information and Broadcasting and the Marine Products Export Development Authority, seeking details on how the government plans to support the Indian shrimp industry through this relief announcement. It is yet to receive a response.