NextFin news, On Tuesday, Andhra Pradesh, India, faced a severe crisis in its shrimp export sector as US President Donald Trump's tariff hike inflicted losses estimated at Rs 25,000 crore, according to state officials and reports from Swarajya and The Indian Express.
Andhra Pradesh contributes 80% of India's shrimp exports and 34% of total marine exports, valued at Rs 21,246 crore annually. The recent US tariff increase has forced cancellation of approximately 50% of shrimp export orders from the state.
The additional tariff burden of Rs 600 crore has affected around 2,000 shipping containers. The US tariffs on Indian shrimp have risen to 59.72%, following Trump's imposition of an additional 25% levy on top of an existing 25%, combined with a 5.76% countervailing duty and a 3.96% anti-dumping duty.
In response, Andhra Pradesh Chief Minister N. Chandrababu Naidu wrote letters to Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh, urging for tax relief and financial aid for aqua farmers. He recommended measures including GST waivers, interest subsidies, and a 240-day moratorium on loan repayments.
Naidu also advocated for Free Trade Agreements with the European Union, South Korea, Saudi Arabia, and Russia to diversify export markets beyond the US. He highlighted that over 30 lakh people in Andhra Pradesh depend on shrimp farming and related activities for their livelihood.
The Chief Minister noted that his government had already reduced aqua feed prices by Rs 9 per kilogram and was considering subsidies on transformers to ease operational costs for farmers. He emphasized the hardships faced by aqua farmers and their families due to the tariffs.
Furthermore, Naidu called for interim financial support and clarity on central relief schemes, stating that exporters are prepared to supply seafood to the European Union if market access improves.
This development comes amid ongoing trade tensions and tariff disputes between India and the United States, impacting key export sectors such as seafood from Andhra Pradesh.
Explore more exclusive insights at nextfin.ai.
