The Indian seafood export industry, especially the production and export of shrimp, is now facing a serious crisis post the US tariffs on India. Trump tariffs are directly affecting the livelihoods of millions of fishermen and families associated with the seafood industry across the nation. However, Gujarat’s seafood exports sector is the hardest hit sector; US Tariffs is impacting India’s annual seafood export value of approximately $7.4 billion (₹65,000 crore).
Exports Worth Over ₹300 crore put on Hold in Gujarat
The US, India’s largest importer of shrimp, recently imposed a new 50% tariff. Along with previously applied anti-dumping and countervailing duties, the total duty burden now reaches 57–58%. Former President of the Seafood Exporters Association of India (SEAI), cultured prawns account for nearly 70% of India’s total seafood exports, of which about 40% of shrimp is exported to the U.S. These tariffs are directly affecting Indian exports worth $2.7 billion in the U.S.
Since the 50% tariff was imposed in two parts, buyers initially accepted a 25% increase, but the new 50% tariff has led to the cancellation of most long-term orders. Even annual contracts for 100 containers have been postponed. This situation is particularly severe for Gujarat, where exports worth over ₹300 crore have been halted.
Impact on Fishermen and Seafood Industry in Gujarat
The new tariff rates have given the hardest blow to more than three million fishermen and their families across India. In Gujarat alone, approximately 1.5–1.7 million people are directly involved in the fishing industry, while another 600,000–700,000 rely indirectly on it. Further, Gujarat has more than 20,000 large trawler boats and over 3,000 fish farms. Their employment and livelihoods are directly dependent on seafood exports.
The crisis is also affecting aquaculture farms in South Gujarat (Valsad, Surat), as well as Andhra Pradesh, West Bengal, and Tamil Nadu. Governments in these states have already taken steps to provide relief to fishermen and farmers.
Expectations of Fishermen from the Government
The Seafood Exporters Association of India (SEAI) has urged the central and state governments to provide immediate relief. Their demand includes:
- Immediate relief on electricity duties to reduce production costs.
- Reduction in other taxes and duties levied by state governments.
- Resumption of long-term finance and interest submissions that are currently halted.
- Adequate financing support to fishermen, aquaculture farmers, and exporters through state financial bodies.
India Still Has Reasons to Celebrate
However, India still has reasons to celebrate. India has registered 102 new units with the European Union, including 16–17 units from Gujarat. If new markets such as Europe, Russia, and Australia open up, Indian exports could regain momentum. Immediate and effective relief measures from the government are essential to protect and safeguard the interests of seafood exporters.