The Andhra Pradesh government on Tuesday welcomed the decision of the United States to reduce tariffs on Indian seafood exports from 25 percent to 18 percent, calling it a significant relief for exporters and a major boost to the state’s aquaculture sector.

State Minister for Agriculture, Animal Husbandry, and Fisheries Kinjarapu Atchannaidu said the tariff reduction, implemented under the India-US trade framework, would substantially ease the burden on seafood exporters, particularly those involved in shrimp farming and processing. “The reduction of US tariffs from 25 percent to 18 percent is a welcome move. It will restore the competitiveness of Indian seafood in the American market and provide much-needed relief to exporters in Andhra Pradesh, which is the country’s leading seafood-producing state,” the Minister said during media interaction.

He recalled that during the period when a 25 percent base tariff, coupled with additional punitive duties, pushed the overall tariff burden to 50-58 percent, Indian seafood exports to the US suffered heavily. Between April and November 2025, exports declined by nearly 15 per cent in volume to about 2.01 lakh metric tonnes, while export value fell by 6.3 per cent to USD 1.72 billion. Frozen shrimp, India’s primary seafood export to the US, was among the worst affected.

With the tariff now reduced to 18 percent, Atchannaidu said Indian seafood products would regain price competitiveness in the US market. “Stalled export orders are expected to resume, and stocks currently held in bonded warehouses can now be cleared. In the coming months, seafood exports to the US are likely to increase by 10 to 15 percent,” he said, adding that export volumes could return to pre-tariff levels by the second half of 2025-26.

The Minister noted that the tariff cut would also improve profit margins in the seafood processing sector. “Processor margins, which had dropped to 5-5.5 percent during the high-tariff phase, are expected to recover to around 7-8 percent,” he said. He added that duty concessions announced in the Union Budget 2026 on key inputs for seafood processing would further strengthen the sector.

Atchannaidu pointed out that while the US market is reviving, Indian seafood exports to non-US markets such as the European Union, China, Vietnam, Russia and the United Kingdom have remained stable. He said non-US destinations accounted for nearly 57 percent of shrimp exports in early 2025-26, reflecting effective market diversification.

Emphasising Andhra Pradesh’s leading role in the country’s seafood economy, the Minister said the tariff reduction would translate into income stability for farmers and fishermen, increased employment opportunities and higher gross value addition in the state. Citing MPEDA estimates, he said India’s total seafood exports could reach 14-15 lakh metric tonnes in 2025-26. “Overall, the reduction of US tariffs to 18 percent marks a turning point for Indian seafood exports and is particularly crucial for the sustainable growth of Andhra Pradesh’s fisheries and aquaculture sector,” Atchannaidu said.

Naidu hails India-US trade pact

Andhra Pradesh Chief Minister N. Chandrababu Naidu has welcomed the landmark trade agreement signed between India and the United States, describing it as a historic milestone in bilateral relations.

He said the decision to reduce tariffs to 18 per cent was a visionary step that would significantly boost trade and investment between the two nations.