Rama Krishna Sangem
Pleas of Andhra aqua farmers have begun yielding results. The Centre has started making efforts to bail out them from the crash of American market, to a tune of around 3 billion US dollars, thanks to President Trump\s 50 per cent tariffs since Sept4ember 1. Effective tariffs on sea food exports from Andhra rose to 59 per cent, thus shutting down exports to the US.
Union Commerce Minister Piyush Goyal has announced at CII Partnership Summit at Visakhapatnam on November that India is about to sign trade deals with the EU, Russia and Australia soon, so that our shrimp exports would go there. If the deals materialize, our shrimp exports to these countries would be up by 3 billion US dollars. Equal to the US losses.
Andhra Pradesh is India’s leading state for aqua exports, particularly shrimp and fish to the U.S.. In 2023-24, AP exported seafood worth $2.369 billion, with frozen shrimp being the largest component. However, the sector is currently facing challenges due to recent tariffs from the U.S., leading the state government to focus on boosting domestic consumption and developing new export avenues to support farmers.
Andhra dominates aqua exports of India
Export Dominance of Andhra Pradesh is there for long. AP accounts for India’s largest exporter of aqua products, with a significant contribution from shrimp and fish. In 2023-24, its seafood exports reached $2.369 billion. Key Products: Frozen shrimp constitutes the majority of the state’s seafood exports, making it a critical player in the U.S. market.
Current Challenges: The U.S. has recently imposed new tariffs, including a nearly 60% tariff on shrimp, which has severely impacted the sector and caused losses for farmers. Government Response: To mitigate these challenges, the state government is taking steps to support farmers and increase resilience:
Increasing Domestic Consumption: The government is promoting the inclusion of aqua products in the Indian diet to create a more stable domestic market. Farmer Support: Initiatives are being put in place to help producers, such as the formation of the A.P. Prawn Producers Company.
Seeking Central Intervention: The state has urged the central government to intervene to help the industry navigate the U.S. tariff situation. Future Outlook: The government has ambitious plans to significantly increase the area under aquaculture, aiming to expand it from 4 lakh acres to 10 lakh acres by 2029-30. The development of new ports is also a part of this strategy to boost maritime trade. If the US markets open up soon, then the exports of Andhra aqua farmers would grow phenomenally. That’s good for India and AP!
