India's Shrimp Sector Faces Turmoil Amid US Tariff Impact

(MENAFN- KNN India) New Delhi, Apr 5 (KNN) India's shrimp industry has entered its second day of disruption as exporters and farmers grapple with the fallout from newly imposed US tariffs.

The move by the US, India's largest shrimp export destination, has triggered uncertainty in trade relations and cast a shadow over future contracts.

Traders are increasingly concerned that American buyers may back out of long-term agreements, potentially causing an estimated loss of nearly USD 1 billion.

Exporters warn that the sudden imposition of tariffs could make Indian shrimp less competitive in global markets, leading buyers to shift to alternative suppliers like Ecuador or Vietnam.

At the heart of the crisis is the Vannamei shrimp, the most widely exported variety from India. These shrimp are typically sold by count, with a 50-count referring to 50 pieces per kilogram - each shrimp weighing approximately 20 grams.

Until recently, this size was fetching around Rs 350 per kg. However, with the current uncertainty, farm-gate prices are now expected to drop by nearly Rs 70 per kg, severely affecting the livelihoods of thousands of shrimp farmers.

“This kind of price crash is not sustainable,” said a trader from Andhra Pradesh, the country's largest shrimp-producing state.“If the situation continues, it will not only affect exports but also domestic employment and aquaculture investments.”

Industry stakeholders are urging the Indian government to intervene diplomatically and explore alternative markets to cushion the blow. Meanwhile, exporters are scrambling to renegotiate contracts and divert shipments, as the sector braces for a turbulent season ahead.

With global demand dynamics shifting and India's position under pressure, the next few weeks will be crucial in determining the long-term health of the country's shrimp export industry.

(KNN Bureau)

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