India’s Shrimp Exports Face a Major Setback as US Raises Tariffs: A 15-18% Decline Expected:

India’s Shrimp Exports Face a Major Setback as US Raises Tariffs: A 15-18% Decline Expected From August 27, 2025 India's shrimp export volumes are anticipated to contract by 15-18 % this fiscal year following the US decision to raise import tariffs on the commodity to 58.26 % which will result in a decline in realizations even if shrimp exporters try to change their product mix and search for substitute export destinations. Additionally, the revenues, which have been in recession for the past 4 fiscal years, will be reduced 18-20% this financial year regardless of support from a surge in shipments in the first quarter in anticipation of the tariff hike. India exported almost $ 5 billion of shrimp, out of which the US accounted for around 48 % in financial year 2025.

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The lower revenues and margins will also reduce the debt protection measures of players and as a result, the credit profiles will also come under pressure. Lower revenues related to the inability to give the tariff burden to customers will impact the operating profit margin by 150-200 basis points. Failure of business volume will also cause the operating margin to dive to its decadal low of 5-5.5% this fiscal year because of the tariff and imposition. The decline in such exports will reduce utilisation and shrink sales of large-sized shrimp. The US has been the most favorable destination for shrimp exporters because of its easy market access, better profit margins, higher growth prospects and repeat customer agreements. It persisted in being a favorable destination regardless of anti-dumping and neutralizing duties and the recent reciprocal tariff of 10 per cent in April 2025 as customers absorbed a portion of the tariff. Even the increase in tariffs to over 50% puts India at a significant competitive drawback against other nations like:

• Vietnam
• Ecuador
• Indonesia
• Thailand

The above-mentioned nations have tariffs less than half that of India. Consequently, India's shrimp exports to the US will become impracticable and the export volume will plunge during the rest of this fiscal year.

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One of the senior directors said, "The headwinds will impact processors and discourage farmers from continuing to invest in shrimp culture. Farmers suffer upfront costs for land lease, seed and feed. Additionally, investments in equipment for aeration, electricity and overall pond management and biosecurity have substantially raised production costs.” Indian shrimp exporters have powerful distribution networks all over the US and have developed domestic infrastructure, which helps them to make profits, while production in other countries is not expected to increase considerably. The Indian shrimp processors transferring their shrimp exports to their substitute markets, including the United Kingdom as well as Russia and China, will assist volume to some extent in the second half of this fiscal year. The Indian government has introduced a strategic initiative to support the shrimp market. National Fisheries Development Board (NFDB) to make a map for making a local ecosystem for shrimp consumption.