New Delhi: The Seafood Export Association of India has approached the ministries of commerce and finance to seek emergency financial support as USD 2 billion worth of shrimp exports to the US face severe disruptions due to increased tariffs imposed by President Donald Trump, a statement said Sunday.
The association has requested a 30 per cent increase in working capital through soft loans, with margins covered by interest subvention and a 240-day moratorium for pre- and post-packaging operations.
“Close to USD 2 billion worth of shrimp exports face severe disruptions,” Seafood Export Association of India (SEAI) Secretary General K N Raghavan told PTI, adding that Trump last week further increased reciprocal tariffs from 25 per cent to up to 50 per cent.
India exported USD 2.8 billion worth of shrimps to the US in 2024 and has shipped USD 500 million worth so far this year. The new duties make Indian seafood significantly less competitive compared to China, Vietnam and Thailand, which face US tariffs of only 20-30 per cent, Raghavan said.
He warned that these Asian competitors would likely capture US market share by lowering prices while Indian exporters cannot reroute existing shipments as it would attract additional 40 per cent penalties for contract violations.
“The only way is to explore five new markets, but it would take time. For instance, the free trade deal with the UK, although signed, will take time for implementation,” Raghavan said.
The tariff escalation threatens one of India’s largest agricultural export sectors, which employs millions across coastal states and contributes significantly to the country’s foreign exchange earnings.
PTI
