The Seafood Export Association of India (SEAI) has sought financial aid from the ministries of commerce and finance as hiked tariffs imposed by US President Donald Trump on India’s imports threaten to cripple the shrimp exports sector.
Close to USD 2 billion worth of shrimp exports face severe disruptions, informed SEAI Secretary General, K N Raghavan.
The body’s statement on Sunday said it has requested a 30 per cent increase in working capital through soft loans, with margins covered by interest subvention, and a 240-day moratorium for pre- and post-packaging operations.
In 2024, India exported USD 2.8 billion worth of shrimps to the US and has shipped USD 500 million worth of the crustaceans so far this year.
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Last week, Trump accused India of indirectly funding Russia’s war in Ukraine through purchase of Russian crude, and imposed 50 per cent tariffs on Indian imports.
India’s seafood sector will be one of the hardest hit by these tariffs, being a massive agricultural exports sector that employs millions across the coastal states and one that contributes significantly to the country’s foreign exchange earnings.
The new duties, said Raghavan, will render Indian seafood significantly less competitive compared to China, Vietnam and Thailand, which face US tariffs of only 20-30 per cent.
He also warned that these Asian competitors would undoubtedly further lower prices in order to capture US market share, whereas Indian exporters cannot even re-route existing shipments as that would attract an additional 40 per cent in penalties for contract violations.
"The only way is to explore five new markets, but it would take time. For instance, the free trade deal with the UK, although signed, will take time for implementation," Raghavan said.