us-to-receive-40000-tonnes-of-indian-shrimp

India's seafood industry is preparing to resume large-scale shrimp exports to the United States, following a temporary pause in planned tariff increases by the US administration.

 

The move comes as a major relief to exporters, who had been bracing for a significant rise in duties. Approximately 35,000 to 40,000 tonnes of shrimp are now being readied for shipment, after weeks of uncertainty.

 

The decision by former US President Donald Trump to suspend a proposed 26 per cent reciprocal tariff has helped ease concerns within the industry. The blanket tariff remains at 10 per cent for most countries, with China being the exception and continuing to face a steep 145 per cent duty.

 

According to the Seafood Exporters Association of India (SEAI), the pause in the tariff increase has restored confidence among exporters. Around 2,000 containers that had been held back due to the tariff uncertainty are now being processed and prepared for dispatch.

 

K N Raghavan, Secretary General of SEAI, stated that exporters are now on equal footing with competitors in the US market, allowing delayed consignments to move forward smoothly.

 

Indian shrimp exports to the United States currently face a total customs duty of 17.7 per cent. This includes a 5.7 per cent countervailing duty and a 1.8 per cent anti-dumping duty, on top of the general 10 per cent tariff.

 

Exporters typically operate under delivery duty-paid agreements, which means they are responsible for absorbing these charges. A rise in tariffs would have forced them to bear significant additional costs on already finalised contracts.

 

Industry officials say the 90-day tariff pause is crucial as it gives exporters a window to fulfil existing orders without incurring extra charges. Despite the brief disruption, there has been no reported decline in demand from the United States.

 

The country continues to be India’s largest shrimp market, both in terms of volume and revenue. In the financial year 2023–24, India exported shrimp worth USD 2.7 billion to the US.

 

Looking ahead, industry leaders are urging the Indian government to use the pause period to push for a more stable and fair trade environment in future negotiations.

 

The emphasis is now on achieving a level playing field for Indian seafood products in international markets, particularly as global trade dynamics continue to shift.