Lakhs of Andhra shrimp farmers bear the brunt of US tariffs: CM Chandrababu Naidu asks Centre for relief

With the United States imposing a 27% import tariff on marine products from India, Andhra Pradesh Chief Minister N. Chandrababu Naidu wrote to Union Commerce Minister Piyush Goyal appealing to save the state’s marine exports industry.

 

“In the financial year 2023-24, marine food products worth $2.55 billion were exported from India to the U.S. Of these, shrimp accounted for 92% of the exports,” Naidu wrote. 

 

He said that the fresh U.S. tariff, which came into effect on April 5, is likely to make Indian shrimp uncompetitive since countries like Ecuador face only a 10% tariff.

 

Indian exporters are already paying an additional 5.77% Countervailing Duty (CVD), pushing the difference between India and competitors even wider, he said.

 

European markets are becoming harder to crack too, thanks to non-tariff barriers and FTAs that countries like Vietnam enjoy, he said. India’s shrimp products, once re-exported through countries like Thailand and Japan, is now being rejected due to rising tariffs on final products. Naidu has requested the Centre to talk to the U.S. government and seek an exemption for shrimp under the new duties. He said that lakhs of livelihoods are at stake.

 

Back home, cold storages are packed, harvests are ready but exporters are hesitant to buy shrimps from farmers dotting Andhra’s coastline, one of the longest in the country. Eight lakh aqua farmers are engaged in shrimp farming in the state.  

 

A farmer from Bhimavaram town, who farms shrimp on 10 hectares said, “There is uncertainty over what the future holds for us. 30-count shrimp (30 shrimps per pound) used to sell at Rs 550 per kg. Yesterday, someone had to sell it for as low as Rs 390. Prices have fallen by Rs 50 to Rs 100 per kg due to the tariff scare.”

 

What is happening in the local market is also stinging the farmers. “Exporters have turned into syndicates. They are not just forcing us to sell at a cheaper price for the U.S. but they are bullying us to lower rates for even smaller shrimps that are exported to China, Vietnam and other countries. As a result, some farmers are selling at local markets at lower prices just to escape losses. This is not fair. We will be forced to shut down farming at this rate,” he said.

 

 

 

India