9 hours ago
India may cut duties on US shrimp imports
NEW DELHI
:
India may lower duties on shrimp imports to support reciprocal trade alignment in its trade agreement with the US, according to two people close to the discussions.
The commerce ministry is closely monitoring the US Department of Commerce's actions on countervailing duty (CVD) and anti-dumping duty (ADD) on shrimp imports from India, the officials said on the condition of anonymity.
India is keeping a 'close watch" on these developments and may consider recalibrating its own duties on shrimp imports if the US undertakes a revision, especially as the two nations work to resolve trade irritants and harmonize tariff frameworks under the Bilateral Trade Agreement (BTA), the first official said.
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Such a move, the second official suggested, would demonstrate India's commitment to fair trade practices and its willingness to align with a key trading partner, provided domestic interests, particularly those of the shrimp farming and processing industry, are safeguarded.
Any adjustment on India's part would also take into account global price trends and the competitive landscape in key markets like the US, Japan, and the EU.
However, if the deal is signed in time, these duties will be recalibrated according to the mutually agreed-upon terms.
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Queries sent to the commerce ministry remained unanswered until press time.
India's seafood exports
Shrimp is one of India's top seafood exports, with the US being its largest market. At present, Indian shrimp exports to the US face an effective customs duty of 17.7%, including 5.77% CVD and 1.8% ADD, and a 10% baseline tariff imposed by the US on 2 April.
In exchange, India levies a 30% duty on US-origin Vannamei shrimp, also known as Pacific white shrimp.
Competing countries, on the other hand, face significantly higher duties.
For instance, Ecuador is subject to a CVD of 7.55%, while Vietnam faces a CVD of 2.84%. Although Vietnam's CVD is lower than India's, it is now also facing a preliminary anti-dumping duty of 35%, imposed in June 2025. Similarly, Thailand's CP Foods (Charoen Pokphand Foods PCL), one of the world's largest producers of feed and shrimp, has been hit with a preliminary ADD of 57.6%.
In 2024-25, India exported marine products worth over $6 billion, with frozen shrimp accounting for a major share, according to data from the Marine Products Export Development Authority (MPEDA).
In comparison, India imported seafood worth $13.76 million from the US in 2023-24, according to the commerce ministry.
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'The lowering of tariffs, especially CVD and ADD, would give a fillip to Indian shrimp exports. We hope the government will take up the issue during bilateral talks," said Pawan Kumar G., president, Seafood Exporters Association of India.
Window of opportunity
With the BTA negotiations entering a crucial phase, trade analysts see this as an opportunity for both sides to make coordinated changes that reduce trade friction.
The 10% base tariff and the proposed additional 16% reciprocal tariff are expected to severely impact India's seafood exports to the US, as these products account for nearly a third of India's global seafood exports.
India is projected to suffer a 20.2% decline, amounting to a $404.3 million loss, especially as Canadian seafood continues to enjoy duty-free access under the USMCA trade pact, said a report by the Global Trade Research Initiative (GTRI).
Processed meat and fish exports are also expected to be hit hard, with estimated losses of $83.1 million, or 14.2%, as tariffs rise from 2.6% to 31.2%, the report added.
