New Delhi: The Seafood Export Association of India has reached out to the commerce and finance ministries for urgent financial assistance as shrimp exports worth USD 2 billion to the United States are facing significant disruptions due to heightened tariffs imposed by President Donald Trump, according to a statement released on Sunday.
The association is advocating for a 30% boost in working capital through soft loans, with interest subvention covering the margins, along with a 240-day moratorium for pre- and post-packaging activities.
K N Raghavan, Secretary General of the Seafood Export Association of India (SEAI), informed that nearly USD 2 billion in shrimp exports are at risk, noting that Trump recently escalated reciprocal tariffs from 25% to as high as 50%.
In 2024, India exported USD 2.8 billion worth of shrimp to the US, with USD 500 million already shipped this year. The new tariffs render Indian seafood less competitive compared to countries like China, Vietnam, and Thailand, which are subjected to US tariffs of only 20-30%.
Raghavan cautioned that these Asian competitors might seize market share in the US by lowering their prices, while Indian exporters are unable to reroute existing shipments due to potential 40% penalties for contract breaches.
He emphasized that exploring five new markets is the only viable option, although it will require time. For example, the free trade agreement with the UK, while signed, will take time to implement.
This tariff increase poses a serious threat to one of India's major agricultural export sectors, which provides employment to millions in coastal regions and plays a crucial role in the nation's foreign exchange earnings.
