Shrimp prices fall up to 19% amid Trump's tariff blow to Indian exports

Business Standard

3 days ago

Shrimp farm-gate prices have crashed by almost 6–19 per cent across all counts in the last one week in anticipation of US President Donald Trump's steep tariff on exports from India, with the sharpest decline occurring in the past couple of days, traders and market watchers said. This could hurt farmer realisations, particularly in states such as Andhra Pradesh and Odisha, where shrimp farming is a major livelihood activity.
India usually exports shrimp of 50 count and below to US markets, while the larger counts — ranging from 100, 90, 80, 70, and 60 — are primarily shipped to China, the European Union, Southeast Asia, Japan, and other Asian countries.
Their prices have also declined.
Data sourced from traders and exporters show that the average price of the most common shrimp variety exported to the US — the 40 count — has dropped by nearly 19 per cent in the past week to around Rs 365 per kilogram. Shrimps are sold based on count, meaning a 50 count equals 50 pieces per kilogram, each weighing about 20 grams.
Overall, traders said that business worth around Rs 24,000–25,000 crore is at stake, with the US imposing a 50 per cent tariff on goods imported from India.
Some traders also noted that shrimp feed meal rates have fallen, as state governments like Andhra Pradesh have urged feed companies to lower prices to support farmers.
The concern now is that Indian shrimp, after factoring in the 50 per cent tariff, will be priced out of the US market compared to competitors such as Ecuador, Indonesia, Vietnam, and China.
They feel that unless new markets are developed or the domestic market is strengthened to absorb the surplus, farm-gate prices could decline further.
'Shrimp trade is usually a 90–120-day cycle, of which 30–40 days are in hatcheries. Once stocking of seeds happens, the farmer has to complete the full cycle. Therefore, there is little chance for him to abandon production midway,' a senior industry official remarked.
India annually exports marine products worth around Rs 60,000–62,000 crore, of which the US alone accounts for almost 40 per cent.
Shrimp accounts for 41 per cent of the volume and 66 per cent of the value of India's total marine exports.
According to the Marine Products Export Development Authority (MPEDA), India exported 716,004 tonnes of frozen shrimp worth $4.88 billion in 2023–24.
Of this, 297,571 tonnes went to the US. One species dominates the Indian shrimp story: Vannamei, which accounts for 87 per cent — or 625,475 tonnes — of total shrimp exports, with a value of $4.25 billion.
The US market alone absorbs 54 per cent of this, followed by China at 16 per cent and the European Union at 9 per cent, MPEDA data show.
'The recent imposition of a 50 per cent tariff by the US on Indian livestock and seafood exports is a significant blow to the sector. These duties severely impact price competitiveness and threaten millions of livelihoods, especially across coastal and rural areas where aquaculture and animal protein production are vital to local economies. Indian exporters are responding proactively to safeguard jobs and maintain global competitiveness,' said Divya Kumar Gulati, chairman of the Compound Livestock Feed Manufacturers Association (CLFMA), a body representing India's livestock sector, to Business Standard.
He added that exploring alternative markets such as the United Kingdom — where the India–UK free trade agreement now offers duty-free access for fisheries products — presents a promising opportunity.
'We expect seafood exports to the UK to rise three-fold, partially offsetting the contraction in US-bound shipments. In parallel, the government must promote broader market diversification by facilitating access to regions such as East Asia, the Middle East, and Africa, and intensify trade diplomacy through platforms like the WTO and G20 to address unfair trade barriers,' Gulati said.