■ U.S. government has imposed a 50% tariff on Indian exports

■ Andhra Pradesh contributes nearly 70% of India’s shrimp exports

■ In FY 2023-24, India exported marine food products worth $2.55 billion to the U.S

■ Shrimp accounted for 92% of the shipments

KIRANMAI TUTIKA | AMARAVATI

The Andhra Pradesh aquaculture sector, the backbone of India’s shrimp exports, is staring at a major crisis after the United States imposed steep tariffs on Indian exports. The move, announced earlier this year and intensified this month, has shaken the state’s aqua sector export economy.

The U.S. government has imposed a 50% tariff on Indian exports, doubling the duty burden on Indian seafood. The hike, part of wider tariff escalation under President Donald Trump’s trade strategy, has already sent shockwaves through Andhra Pradesh, which contributes nearly 70% of India’s shrimp exports.

The immediate fallout is visible at both ends of the supply chain. In Andhra’s coastal districts, farm-gate shrimp prices have plunged by nearly 30%, as exporters halt procurement in the face of unviable costs and overflowing cold storages. Farmers complain that the cost of production now exceeds their selling price, pushing many into losses.

Speaking publicly for the first time on the issue, earlier during a scheme launch, Chief Minister N. Chandrababu Naidu admitted the U.S. tariff shock is set to heavily impact Andhra Pradesh’s aquaculture-dependent economy. “The increase in tariffs in America will burden the aqua farmers in the state,” Naidu said, noting that Andhra Pradesh has already been subsidising electricity for aqua farmers at Rs.1.50 per unit to reduce input costs.

The Chief Minister also revealed that discussions would soon be held with aqua farmers to prepare a comprehensive action plan. “We have taken note of the matter and we will discuss it with farmers in a day or two. Then we will make an action plan,” he said.

The business community too is deeply concerned about the fallout of the U.S. tariff war. Speaking to Metro India, Andhra Pradesh Chamber of Commerce President P. Bhaskar Rao said the impact would not be confined to aquaculture alone. “On the 50% tariff imposed by the U.S., in agri commodities like rice, various spices and other things, mainly all these exports from Andhra Pradesh that go to the USA will be thoroughly impacted. Already the exporters are worried too much because out of this 87 billion dollars of exports to the U.S., almost one-fifth of the country’s total exports go there,” he said.

Adding to the pressure, farmers’ organizations in Andhra Pradesh have launched a phased agitation, demanding urgent government intervention. In early April 2025, some farmers even announced a “crop holiday”, refusing to stock new shrimp seed in protest against the initial tariff announcement.

V. Gangadhar Varma, a shrimp farmer from Palakollu voiced his frustration, “We are facing unbearable losses. Cold storages are full, buyers have stopped procurement, and our prices have collapsed. If the government does not come to our rescue with subsidies and a special package, many of us will be forced to abandon shrimp farming.”

Earlier in April, CM Chandrababu Naidu had written to Union Commerce and Industry Minister Piyush Goyal, warning of the “devastating impact” of tariff escalation. He pointed out that in FY 2023-24, India exported marine food products worth $2.55 billion to the U.S., with shrimp accounting for 92% of the shipments. With the new duties, Indian exporters now face an effective 50% burden, compared to other countries' competitive disadvantage.

The Andhra Pradesh government is weighing multiple options like exploring exports to Russia, the EU, and other emerging destinations to reduce overdependence on the U.S., beside promoting shrimp consumption within India, with talks underway to include shrimp in the Army’s official ration menu.