India’s booming shrimp export dream has hit troubled watersโand Andhra Pradesh is at the epicenter.
Starting August 1, the United States is set to impose a crippling 26% countervailing duty (CVD) on shrimp imports from India, up from the current 10%. The move has sent shockwaves across Andhraโs aquaculture belt, threatening the livelihoods of nearly 3 lakh shrimp farmers and thousands of allied workers.
Andhra Pradesh, which contributes over 40% of Indiaโs shrimp exports, is already witnessing sharp declines in farm-gate prices. Shrimp that once sold for โน460/kg is now fetching โน390โ410/kg, leaving farmers staring at massive revenue losses during their peak harvest season.
Exporters are in a fixโeither absorb the cost or shift the burden to farmers. Meanwhile, global competitors like Ecuador and Vietnam, facing lower tariffs, are positioned to steal Indiaโs market share in the U.S., the worldโs largest shrimp importer.
Industry experts fear this tariff hike could trigger a domino effectโleading to production drops, farmer exits, and a shift in global sourcing away from India.
Calls are growing louder for the Indian government to urgently negotiate trade relaxations or seek exemptions. The sector, which fuels โน60,000 crore in foreign exchange, is too vital to sink.
If corrective action isnโt taken soon, the damage wonโt just be economicโitโll be generational.
