Odisha Plans Relief for Seafood and Textile Sectors Amid US Tariff Shock

Bhubaneswar, Aug 28 (KNN) Odisha’s seafood and textile industries, two of the state’s most labour-intensive sectors, are facing severe pressure following the US government’s imposition of a 50 per cent tariff on Indian exports.

In response, the state government is preparing interim relief measures to support both sectors.

Odisha exported seafood worth Rs 4,700 crore in 2024-25, with nearly one-third going to the US. The textile and apparel sector, though smaller with exports of Rs 85.5 crore in 2023-24, has been viewed as a high-potential industry.

Industries Secretary Hemant Sharma confirmed that targeted interventions are under consideration, including interest subvention on working capital for seafood processors.

Exporters report a sharp decline in shipments. “We used to send around 100 containers to the US each month. This August, it dropped to less than 25,” said Tara Ranjan Patnaik, chairman of Falcon Marine Exports.

He warned that alternative markets such as Europe, China, and Russia are either too small or unreliable. With Vietnam facing only a 20 per cent tariff, competition has intensified.

Industry representatives say the tariff hike has disrupted the value chain, affecting processors, suppliers, and farmers. The Seafood Exporters’ Association of India has submitted a memorandum seeking compensation to manage the additional burden.

Odisha’s seafood industry, which has grown from Rs 360 crore in 2004-05 to over Rs 4,700 crore in 2024-25, is among the top five foreign exchange earners and employs a large workforce, more than half of them women.

The textile sector is also at risk, as exporters may shift manufacturing to Bangladesh, Indonesia, or Vietnam to cut costs. The state government is working on measures to safeguard jobs and investor confidence, especially after commitments worth Rs 7,808 crore were made during the Odisha TEX 2025 summit.

(KNN Bureau)