Aquaculture Sector in Andhra Pradesh Faces Crisis Over New US Tariff

Andhra Pradesh, Aug 6 (KNN) The aquaculture industry in Andhra Pradesh is bracing for a major setback as the United States, under President Donald Trump, has announced a 25 per cent tariff on Indian products, effective August 7.

This move will increase the total tariff burden on Indian seafood exports to the US to nearly 35 per cent, including an existing 5.77 per cent countervailing duty and a 3.96 per cent anti-dumping duty.

Members of the Seafood Exporters Association of India (SEAI) fear that this steep hike will severely affect shrimp farmers in Andhra Pradesh, where over 6.5 lakh farmers cultivate shrimp, fish, crabs, and other species across 5.7 lakh acres.

The sector also employs nearly 50 lakh people across various segments including hatcheries, processing units, cold storage, and feed companies.

In 2023-24, India exported 17.81 lakh metric tonnes of seafood worth USD 7.38 billion (around Rs 60,524 crore), with Andhra Pradesh contributing approximately Rs 19,428 crore at a compound annual growth rate (CAGR) of 9.52 per cent.

The United States remains the top importer, accounting for 34.53 per cent of India’s seafood exports by value.

Marine Products Export Development Authority (MPEDA) officials said India exports a wide range of seafood to over 120 countries. However, the latest US tariffs have triggered fresh concerns.

Many farmers had already faced setbacks after a 26 per cent reciprocal tariff was imposed earlier this year, leading to reduced shrimp prices and crop holidays.

Andhra Pradesh State Aquaculture Development Authority (APSADA) Vice-Chairman Anam Venkata Ramana Reddy stated that the government is working to reduce the impact on farmers.

However, aquaculture farmer A. Veerraju from Eluru district warned that the increased tariffs could make continuing production financially unviable unless the Central government intervenes urgently.

(KNN Bureau)