Indian shrimp exporters seek incentives to offset tariff impact
With a 50 per cent reciprocal tariff set to hurt the Indian shrimp exports in the largest market — the United States, stakeholders have sought support from the government through interventions such as reinstating of interest equalisation scheme and enhancing of incentives under RoDTEP to tide over the situation.
Voicing concern, the Seafood Exporters Association of India (SEAI) said at this high rate of tariff it will be impossible to supply goods to any market. This move by the US imperils market of approx $3 billion for Indian seafood that exists in that country, said K.N. Raghvan, secretary general of SEAI.
The system of differential tariff adopted by the US, wherein various countries are offered different rates of tariffs, also places Indian seafood at a substantial disadvantage. The main competitors for Indian seafood are Ecuador, which has a tariff rate of 15 per cent, followed by Indonesia (19 per cent) and Vietnam (20 per cent). Thus imports from these countries gain a huge “tariff advantage” over India while exporting seafood to the US, Raghavan said.
Hitting livelihoods
SEAI has sought the support from the government to tide over this difficult situation so that activities continue without interruption in the units and procurement proceeds unhindered, even as it seeks alternate markets for the Indian produce. “We hope that an early solution emerges for this impasse, which will help facilitate continued export of seafood to the US,” he said.
Divya Kumar Gulati, Chairman at Compound Livestock Feed Manufacturers Association (CLFMA) of India, said “The imposition of a 50 per cent tariff by the US on Indian livestock and seafood exports is a major setback for the sector. These duties not only affect price competitiveness but also disrupt livelihoods, especially across coastal and rural economies where aquaculture and animal protein production are vital. To cushion this impact, we urge the government to expand and recalibrate export incentives under schemes like RoDTEP, providing higher WTO-compliant rebates for affected sectors. We suggest reinstating the Interest Equalisation Scheme (IES) to ease credit access and reduce financing costs for exporters, particularly small and medium enterprises.”
Additionally, India must actively promote market diversification—reducing dependency on the US—by facilitating access to emerging regions such as East Asia, the Middle East, and Africa, Gulati said.
Other duties burden
“It is equally important to intensify trade negotiations at multilateral and bilateral levels, using platforms like WTO and G20 to seek relief and address unfair barriers. We also call for sector-specific advocacy backed by data that highlights potential job losses and economic disruption, pressing for exemptions or reduced duties. On the domestic front, it is imperative to build a strong and sustainable market for shrimp consumption within India to reduce over-reliance on exports and support farmer incomes. Lastly, upgrading quality standards and certifications for Indian exporters can boost global acceptance and resilience of our livestock and seafood sectors in a shifting trade environment,” Gulati said.
The increase in tariff rates is in addition to the counter vailing duty of 5.77 per cent and anti-dumping duties imposed on seafood exports from India.
Despite these developments, 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.
Nitin Awasthi, an analyst at InCred Equities, 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.
Published on August 7, 2025
