The increase in tariff rates comes in addition to the counter vailing duty of 5.77 per cent and anti-dumping duties imposed on seafood exports from India.
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Voicing concern over the hike in the US tariff from 10 to 25 per cent, the Seafood Exporters Association of India has resolved that the burden of increased tariffs will not be borne by exporters but will be passed on to the buyers in the US.
The increase in tariff rates comes in addition to the counter vailing duty of 5.77 per cent and anti-dumping duties imposed on seafood exports from India.
While the increase in tariff and differential rates applied to different countries have created an uneven playing field for seafood exporters from India, the lingering uncertainty due to threat of imposition of additional duty as “penalty” has added to the difficulties faced by the sector, said K.N. Raghavan, Secretary-General of the association.
Farmgate prices may fall
The absence of clarity and certainty regarding rate of import duty creates an environment which is not conducive for smooth conduct of trade and commerce between countries, he said.
The association congratulated the Government and the Commerce Ministry for the successful culmination of FTA with UK which will open a new market. It also sought the government support to tide over the difficulties faced in the short run due to the developments in the US.
Nitin Awasthi, an analyst at InCred Equities said the tariff imposition could trigger the farm gate prices of shrimps to fall by 15-25 per cent, effecting a temporary halt to the US bound shipments.
However, he said India remains a top contender in the shrimp game with global supply tightening and local fundamentals becoming strong. The short-term pain is real, but the long-term story stays intact. The move is expected to reshape short term trade dynamics, though India is structurally well positioned for a rebound.
According to him, the seafood export sector could have easily digested a 15 per cent hike – but 25 per cent is likely to cause a “temporary pause”. Supply shortages in the US will support a rebound in prices where India stands to benefit. Despite tariff headwinds, Indian shrimp exports remain strong with May shipments reaching 78,752 tonnes, the second highest monthly volume on record. Peak exports in June CY21 was 79,958 tonnes, he said.
Published on July 31, 2025
