Odisha's Shrimp Industry Hit Hard By New US Tariffs

(MENAFN- KNN India) Balasore, Aug 1 (KNN) Odisha's shrimp exporters are facing a major crisis after US President Donald Trump announced a 25 per cent tariff on all Indian imports, including seafood.

This move has disrupted trade, halted orders, and triggered fears of large-scale financial losses.

Odisha is a leading shrimp exporter, with hatcheries and aquaculture farms largely dependent on the US and European markets.

Frozen Vannamei shrimp, the state's key marine export, makes up 99.5 per cent of the seafood sent to the US, which was valued at $170 million in 2024–25.

“Over 30 per cent of our shrimp exports go to the US. With a 25 per cent duty, we're struggling to stay competitive,” said Sangram Das, vice-president of the Seafood Exporters Association of India's Odisha Chapter.“Buyers are either stalling or renegotiating orders.”

Vannamei shrimp farming has grown rapidly in Odisha over the past decade. But the new tariff is making Indian shrimp unviable against cheaper alternatives from countries like Ecuador.

“The industry already works with tight profit margins. A hike like this could crush farmers and processing units,” said Badal Das of the All Odisha Fish Federation.

Exporters are also dealing with high input costs, global demand fluctuations, and shipment delays. Thousands of jobs - from farmers to transporters - are now at risk.

Industry leaders are urging the Indian government to hold urgent talks with the US for tariff relief and seek financial aid for affected exporters. While they are exploring markets in China, Japan, West Asia, and Europe, experts say it will take time to fill the gap left by the US.

“The damage could be long-lasting unless quick policy action is taken,” warned an official from the Marine Products Export Development Authority.

(KNN Bureau)

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