US President Donald Trump’s sudden escalation of tariffs from 25 to 50 per cent has created a crisis for shrimp exporters in Bengal and elsewhere in the country.
The beleaguered exporters say they will wait and watch, hoping for a rollback of the US tariffs, while seeking opportunities in the European market.
Trump’s decision is a blow also to shrimp producers in states such as Andhra Pradesh and Odisha.
The increased tariffs have eroded price competitiveness in the US market, sparking concerns about contract cancellations and shipment delays as well as the loss of market share to Asian competitors.
The exporters now face mounting inventories, shrinking profit margins and the urgent challenge of finding alternative markets in Europe and East Asia to cushion the potential losses.
India exports shrimp worth around ₹65,000 crore annually, with Bengal contributing approximately ₹4,500 crore. Of the total volume, about 20 per cent is shipped to the US. The other high-demand destinations include Vietnam, Thailand, China, Japan and Russia.
“This is an unexpected blow to shrimp exporters, which will eventually have an impact on shrimp growers at the grassroots,” said Shyam Sundar Das, secretary, the Digha Fishermen and Fish Traders’ Association.
Chintamoni Mondal, a shrimp exporter from Digha, said: “Exporting shrimps against high tariffs would lead to huge losses. I shall wait and watch a few more days and then try to explore new markets in Europe.”
He said many exporters had suspended their shipments to the US.
The development can affect nearly 40 lakh people in the coastal belts of Bengal and Odisha alone.
In Calcutta, Yogesh Gupta, managing director of Megaa Moda Private Limited, which exports shrimps, echoed similar concerns while confirming his company’s cautious stance.
“We will watch a few more days as I hope the situation will change and the US will roll back its decision,” Gupta, also the regional chairman of the Federation of Indian Export Organisations, Calcutta, said.
Gupta said: “Right now, the situation is not conducive as the buyers are not interested, either.”
“We now export around 30 per cent of our trade to the US and about 20 per cent to Europe. If the situation doesn’t change, we shall have to increase our exports to Europe.” Gupta warned that if new overseas markets cannot be developed quickly, the domestic market would be unable to absorb the surplus shrimp because of the high prices.
The Seafood Export Association of India (SEAI) has approached the commerce and finance ministries seeking emergency financial assistance and warning that shrimp exports worth $2 billion are at risk from the tariff hike.
The association has urged a 30 per cent increase in working capital through soft loans, with interest subvention, and a 240-day moratorium on pre- and post-packaging operations.
K.N. Raghavan, SEAI secretary-general, said China, Vietnam and Thailand face US tariffs of only 20-30 per cent in the sector.
Raghavan said: “We need to explore other foreign markets…. The government (is negotiating) a bilateral free trade agreement with the UK, which may take a little more time. They are also on the verge of concluding a free trade agreement with the European Union. We will then get a level playing field with other countries.”
India exported $2.8 billion worth of shrimps to the US in 2024. The figure is $500 million so far this year.
