NextFin news, On this Wednesday, September 17, 2025, shrimp farmers and processing workers in Odisha, India, are grappling with the fallout from a 50% tariff imposed by the United States on Indian shrimp exports. This tariff, part of a broader US trade policy affecting multiple Indian goods, has severely impacted Odisha's shrimp industry, which accounts for a significant share of India's fishery exports.
The Marine Products Export Development Authority reported that Odisha exported fishery products worth over Rs 4,900 crore in the 2024-25 fiscal year. However, since the tariff's implementation, profit margins for shrimp farmers have drastically shrunk, forcing many to consider switching to other livelihoods. Nursinga Rout, a shrimp farmer from Astarang block in Puri district, stated, "After the tariff, the margin will again drop. If this continues, we will be unable to survive."
In Ganjam district's Gopalpur area, many shrimp hatcheries have either halted or scaled down production over the past month in response to the tariff hike, according to a report from the Times of India. This reduction in production further threatens the supply chain and employment in the sector.
Balasore district's shrimp processing plants, which employ a workforce composed of nearly 95% women, are also facing an export crisis. Women workers like Pushpalata Marandi, Asma, and Muni Bibi, who rely on shrimp processing jobs as their primary source of income, express fear of layoffs and economic insecurity. Pushpalata said, "This is the third year since I joined the work here. My house runs with the money I earn. But we are hearing about some trouble in business and are therefore afraid that we might lose our jobs."
Chinmay Biswal, owner of a shrimp processing unit in Balasore, highlighted the broader economic impact, noting that over 100,000 people are directly or indirectly dependent on the shrimp economy in Odisha, including farmers, transporters, and factory workers. He expressed hope that government intervention would help protect exports and livelihoods.
The US market accounted for over 40% of India's shrimp exports in 2023, making it the largest single destination. The tariff has disrupted this critical trade link, causing financial strain across the industry. Andhra Pradesh's Chief Minister Chandrababu Naidu recently estimated losses of around Rs 25,000 crore for shrimp farmers in his state, underscoring the widespread impact.
The Odisha Fisheries & Animal Resources Development Department reported that the state's shrimp sector employs over 300,000 people directly and indirectly, with women forming the majority in processing plants. The tariff's ripple effects threaten not only economic stability but also social structures dependent on this industry.
These developments come amid ongoing uncertainty about the duration and future of the US tariffs. Industry stakeholders and workers alike await government measures to mitigate the crisis and sustain the shrimp export economy.
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