Indian seafood exporters get the ‘sinking’ feeling

U.S. President Donald Trump’s announcement of 26% tariff across a spectrum of goods from India will have an immediate impact on Indian seafood exports, which totalled $7.38 billion during 2023-24.

Impact on Indian seafood exports to the U.S. will be significant considering that India is the largest exporter of seafood to the U.S., having a 35% share in the U.S. market, said K.N. Raghavan, secretary general of the Seafood Exporters Association of India.

The impact is accentuated by the fact that Ecuador, India’s closest rival in the U.S. market, has been slapped with a 10% tariff.

The difference of 17% tariff is a cause for worry for the Indian seafood business, he pointed out. Ecuador’s current share in the U.S. market is 18-19%.

India exported a total of 17.81 lakh tonnes of seafood during 2023-24, earning ₹60,523 crore.

The bulk of seafood exports is frozen shrimp and the biggest importer is the U.S., accounting for 2.97 lakh tonnes worth about $488 million. The European Union is also a huge importer of Indian seafood.

It may be recalled that the U.S. had banned imports of all Indian wild-caught shrimps reasoning that Indian fishermen had not deployed Turtle Excluder Devices (TED) to prevent turtles from getting injured or killed while fishing for shrimp.

Frozen shrimp constitutes more than 40% of the quantity and 66% of the value of Indian seafood exports.

Mr. Raghavan said that the future would be impacted by the Indo-U.S. bilateral trade agreement. An early conclusion may bring some relief. The government is working on the agreement, he added.