By Arindam Ganguly, OP
Bhubaneswar: Odisha’s seafood industry has plunged into deep crisis after the US government imposed a steep 50 per cent tariff on all Indian imports. The move, announced by President Donald Trump in retaliation for India’s continued oil trade with Russia, has hit the coastal state’s shrimp exports the hardest.
With Vannamei shrimp making up 99.5 per cent of Odisha’s $170 million marine exports to the US, this trade has been thrown into disarray. Exporters are reporting suspended orders, price renegotiations, and the looming risk of financial distress.
The US remains Odisha’s largest seafood market, accounting for more than 45 per cent of its total exports. The 50 per cent tariff will definitely impact both factories and farmers in Odisha, said Hari Marine General Manager (Marketing) R Venkatesh.
“Among all export destinations including Japan and Vietnam, the US remains the most significant for both India and Odisha. Without urgent diplomatic intervention, this situation could become very troubling,” Venkatesh pointed out.
The industry’s concerns are echoed at the top too. Falcon Marine Exports Limited Chairman Tara Ranjan Patnaik noted that Odisha alone exports seafood worth nearly Rs 1,500 crore to the US annually, out of India’s Rs 22,000 crore seafood trade with that country.
“While there are alternative countries we can export to, the prices in those markets may be lower or different. This will create additional pressure on fish farmers, who are already under financial strain,” Patnaik warned.
Fish farmers in coastal districts are feeling the tariff heat. Highlighting the tariff impact, Chakradhar Sahoo, a shrimp farmer from Balasore, said, “We usually sell around 150 tonne shrimp to exporters. But now rates are being cut due to the tariff.”
Exporters, however, are holding on to cautious optimism. Gyan Ranjan Dash, a seafood exporter, said let’s hope the governments of both countries engage in constructive dialogue. “That’s the only way forward for the industry and for the lakhs of livelihoods at stake,” added Dash.
The impact may extend beyond seafood. ASSOCHAM Odisha State Development Council Chairman Pankaj Lochan Mohanty said the state’s famed textile and garment sectors, including Sambalpuri and Ikat handlooms, could also suffer due to higher prices, reducing US consumer demand.
“It’s not just about trade; this affects livelihoods, rural stability, and employment. We must now diversify markets, improve product quality, and explore untapped regions like Southeast Asia and Europe,” Mohanty said.
PNN