India’s marine product export sector is gripped with uncertainty for over three months following a substantial increase in import tariffs by the US, a critical market for Indian seafood.
Unofficial estimates suggest a precipitous 70% drop in marine product exports to the US, starkly contradicting the central government’s public stance that the hike has not severely impacted the sector.
The Union Fisheries Ministry has indicated that it expects the tariff issue to be resolved soon through diplomatic discussions. However, the lack of recent official export data since the tariffs took effect has made it difficult to formally assess the full extent of the crisis, forcing industry stakeholders to rely on anecdotal evidence, which overwhelmingly points to a major slump.
This instability comes despite a recorded surge in marine product exports until August, likely fuelled by anticipation of the impending tariff increase.
Minister of State for Fisheries, George Kurian, has maintained that the tariff hike has not created “significant problems” for the sector.
He recently told the media that the initial disruption was merely a temporary hitch, wherein consignments exported immediately after the US imposed the additional levy could not be offloaded.
The minister claimed that despite the US traditionally accounting for 45% of India’s shrimp exports, the country has successfully diversified to new markets.
He expressed confidence that the combination of continued discussions to revoke the extra duty and the availability of new markets would eventually lead to a surge in marine exports .
Kurian also stated that India’s current marine product exports have registered a 6% increase, although industry representatives suggest this figure is based on old data.
In sharp contrast, Charles George, state president of the Fishermen’s Solidarity Forum, told ETV Bharat that the minister’s statement relies on outdated figures and that the US tariff has delivered a “massive blow” to seafood exports.
George pointed out the gravity of the situation, revealing that a recent meeting scheduled to discuss the crisis had to be postponed after most entrepreneurs declined to attend.
He argued that exporters, many of whom are dependent on bank loans, are hesitant to openly admit the crisis, fearing financial repercussions. He questioned how long the sector could sustain itself without addressing this serious issue and called for urgent intervention from both the state and central governments.
Echoing the industry’s deep concern, KN Raghavan, secretary of the Seafood Exporters Association of India, confirmed that seafood exports to the US have been put on hold, stating that the estimated 70% decline in shipments is widely felt, even without official figures.
Raghavan highlighted that the current 50% import duty, on top of existing levies, makes Indian exports—which typically account for 40% of the US’s marine product imports—uncompetitive against rivals like Ecuador (15% duty), Indonesia (18%), and Vietnam (20%). He stressed that Indian shrimp would likely lose demand in the American market under these conditions.
The industry is now demanding that the central government intervene to alleviate the crisis by seeking a moratorium on bank loans, loan interest waivers, and an extension of loan tenures, noting that other markets do not offer the same prices as the American market.
Exporters also revealed that the mere announcement of additional punitive tariffs by US president Ronald Trump had already dampened the market, with US buyers suspending new orders.
Experts now advise the government to urgently pursue Free Trade Agreements with more countries, immediately implement the pending agreement with the UK, and focus on alternative markets in Europe and China.
