Govt Urges Seafood Exporters To Seek New Markets, Upgrade Value Addition Amid US Tariff Hike

(MENAFN- KNN India) New Delhi, Aug 12 (KNN) The government on Monday called on seafood exporters-facing a cumulative 59 percent tariff in the United States-to 'bravely face' current challenges by diversifying into alternative overseas markets and boosting domestic supplies.

Following a meeting with industry representatives, Fisheries Minister Rajiv Ranjan Singh Lalan said the European Union, Japan, South Korea, Russia, and other destinations offer potential opportunities for Indian seafood shipments, according to FE.

He noted that the recently signed India–UK Free Trade Agreement also contains provisions for the fisheries sector.

Singh encouraged exporters to make use of the Fisheries Infrastructure Development Fund to upgrade value-addition, processing, and packaging capabilities.

India's seafood exports stood at USD 7.38 billion in FY25, with the US accounting for USD 2.8 billion-primarily frozen Vannamei shrimp.

Andhra Pradesh, the country's largest shrimp exporter with a 60 percent share, has been particularly affected by the higher duties.

According to state fisheries commissioner Rama Shankar Naik, the effective US tariff on Indian seafood now stands at 59.71 percent, including countervailing duties (5.76 percent), anti-dumping duties (3.96 percent), and a 50 percent levy announced by US President Donald Trump.

Naik also cited a fall in India's share of EU seafood imports-from around 35 percent earlier to 11 percent-due to concerns over residue levels and consignment rejections.

Industry representatives warned that the tariff regime puts Indian seafood at a competitive disadvantage compared to suppliers such as Ecuador (15 percent tariff), Vietnam (20 percent), and Thailand (19 percent). KN Raghavan, secretary general of the Seafood Exporters Association of India (SEAI), urged the Centre to extend financial support to help exporters weather the crisis.

Exporters have also sought the removal of India's 30 percent import duty on seafood, except for certain varieties such as Vietnamese basa and sardines from Gulf countries, to protect domestic fishing communities.

Bilateral agri-trade between India and the US was valued at USD 6.6 billion in 2024, with India exporting USD 5 billion worth of agricultural goods and importing USD 1.5 billion.

(KNN Bureau)

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