Odisha's marine industry braces for jolts from Trump tariffs

Time of India

4 days ago

Balasore: The shrimp industry in Balasore is staring at a significant disruption in trade following US President Donald Trump's announcement of a 25% tariff on all Indian imports, including seafood products.
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Odisha, known for its shrimp cultivation and export, hosts numerous hatcheries, aquaculture farms and seafood processing units that primarily serve the US and European markets. The sudden imposition of steep tariffs has left exporters grappling with uncertainty, suspended orders, and fears of substantial financial losses.
"Over 30% of our shrimp consignments are destined for the US. The value of marine products exported from Odisha to the US in 2024-25 stands at $170 million, with 99.5% comprising frozen Vannamei shrimp, the state's leading marine product.
Any hike in import duties directly impacts our pricing. Buyers are already holding back or renegotiating orders," stated Sangram Das, vice-president of the Odisha Chapter of the Seafood Exporters Association of India.
The cultivation of Vannamei shrimp has experienced robust growth in Odisha over the past decade. However, the newly imposed tariff threatens to erode profit margins, rendering Indian shrimp uncompetitive compared to low-cost exporters like Ecuador.
"The industry operates on very narrow margins. A 25% duty renders Indian shrimp nearly unviable in the US market. If this situation persists, farmers and processing units across the state will face a severe financial crisis," warned Badal Das, coordinator of All Odisha Fish Federation.
Compounding the crisis, Odisha's marine exporters are already contending with high input costs, fluctuating global demand and logistical disruptions, resulting in delayed shipments.
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The new tariff could exacerbate the situation, jeopardizing thousands of jobs — from aquaculture workers and packaging staff to cold storage operators and transporters.
Industry leaders want the Centre to engage in urgent high-level trade discussions with the US to seek exemptions or negotiate relief measures for the seafood sector. They are also calling for financial support to offset export losses and protect the livelihoods of local shrimp farmers.
Exporters are also exploring alternative markets in China, Japan, West Asia and Europe. However, experts caution that such diversification will take time and may not immediately compensate for the loss of the US market, which remains one of the most lucrative destinations for Indian seafood products.
"The impact is real and immediate. Unless quick policy action is taken, Odisha's marine export sector could suffer long-term damage," warned a senior official from the Marine Products Export Development Authority (MPEDA).