Andhra Pradesh CM N Chandrababu Naidu Appeals for US Tariff Exemption on Shrimp Exports

Andhra Pradesh's Chief Minister, N Chandrababu Naidu, has called on the central government to negotiate a US tariff exemption for shrimp exports. He warned that the state's aqua sector is at risk of collapse due to a sudden increase in duties. Naidu reached out to Union Minister Piyush Goyal, seeking immediate intervention to support the struggling industry.

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The United States recently implemented a 27% import duty on Indian marine exports, effective from April 5. This decision has severely impacted shrimp exports, which make up 92% of the trade. Naidu emphasised that the aqua sector is vital to the state's economy and cannot withstand such a blow.

Impact on Exporters and Economy

The tariff hike has led to cold storages being filled and exporters halting procurement. This situation threatens the livelihoods of many people who rely on the fisheries industry in Andhra Pradesh. In 2023–24, India exported marine products worth USD 2.55 billion to the US.

Naidu highlighted that India now faces a disadvantage compared to competitors like Ecuador. Ecuador benefits from only a 10% duty, giving it nearly a 17% advantage over Indian exporters. This disparity significantly affects the competitiveness of Indian shrimp in the global market.

Global Challenges and Additional Barriers

Naidu also mentioned that harvested shrimp, already packed for previous orders, is stuck at ports and in cold storages. This situation incurs unexpected costs due to the new tariffs. Globally, countries such as Vietnam and Thailand are cancelling orders from India.

The European Union is adding further challenges by imposing additional barriers, including duties ranging from 4% to 7%. These developments compound the difficulties faced by Indian exporters in maintaining their market share internationally.

Naidu's appeal underscores the urgent need for government intervention to mitigate these challenges and support the aqua sector's sustainability in Andhra Pradesh. The situation requires immediate attention to prevent further economic setbacks for those dependent on this vital industry.