(MENAFN- KNN India) New Delhi, Aug 7 (KNN) India's seafood industry is bracing for a major setback after US President Donald Trump imposed an additional 25 per cent tariff on Indian exports, adding to the 25 per cent tariffs already announced earlier.

The combined effect of these tariffs could lead to a loss of nearly Rs 24,000 crore, according to a report by Morgan Stanley.

The Indian seafood industry, particularly the shrimp export sector, is heavily dependent on the US market.

The sudden tariff hike puts Indian exporters at a disadvantage compared to global competitors like Ecuador, potentially affecting both exporters and farmers.

In response, the industry is urging the Indian government for support and exploring new markets to reduce its dependence on the US.

As per the report, Avanti Feeds, a major player in the sector, generated 77 per cent of its revenue from North America in the March quarter this year, slightly down from 80 per cent a year ago.

Similarly, Apex Frozen Foods reported that 53 per cent of its revenue came from the US market.

India currently contributes around 20 per cent of the global shrimp supply. However, production is expected to remain steady at 1.2 million metric tonnes this fiscal year.

Indian shrimp exports to the US already attract a 17.7 per cent effective customs duty, which includes 5.7 per cent in countervailing duties and 1.8 per cent in anti-dumping duties. The latest tariff hike will now push this up to 25 per cent, raising concerns about reduced competitiveness.

The financial impact is already visible in the stock market. Shares of Avanti Feeds have fallen 9 per cent in the last month, while those of Apex Frozen Foods and Waterbase have dropped by 7 per cent each.

Industry stakeholders are now watching for policy responses to help offset the potential damage.

(KNN Bureau)

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