India’s seafood sector, often seen as a hidden gem in the country’s vast agricultural landscape, is now facing a pivotal moment. On April 12, 2025, the United States Trade Representative (USTR) dropped a bombshell by announcing a steep hike in tariffs on shrimp imports from India, jumping from an average of 10% to a whopping 26%, set to kick in on July 1. This decision has sent ripples of concern throughout the Indian aquaculture scene, particularly hitting hard for small-scale shrimp farmers in Andhra Pradesh, West Bengal, and Odisha. As the top supplier of frozen shrimp to the U.S., India risks losing a hefty chunk of its $7 billion seafood export revenue if these tariffs aren’t rolled back or softened through diplomatic talks or trade negotiations.
This tariff increase is part of a larger overhaul of U.S. trade policies under the recently passed “American Supply Security Act.” The goal of this act is to lessen reliance on imported agricultural and seafood products by boosting domestic production and ensuring food security. Indian shrimp exports were singled out after lobbying by the Southern Shrimp Alliance, a group of U.S.-based shrimp producers, who claimed that Indian producers benefit from government subsidies and don’t meet certain sanitary standards. In response, the USTR conducted a review and concluded that Indian shrimp exporters were involved in “unfair trade practices,” which included allegations of using banned antibiotics and undervaluing their export shipments.
This isn’t the first time India has been under the microscope. Back in 2018, Indian shrimp faced temporary bans from countries in the European Union because they didn’t meet strict food safety standards. But India didn’t sit back; they quickly got to work, improving their quality control, traceability, and certification processes to align with EU regulations. Now, the industry is up against a different kind of challenge. The recent hike in U.S. tariffs comes at a time of heightened tensions between the U.S. and China, as well as a push to bolster domestic industries ahead of the 2026 midterm elections. Many see this as a populist move aimed at safeguarding American jobs, particularly in Southern states like Louisiana, Alabama, and Mississippi, where shrimp fishing is a vital part of the local economy.
At the core of the matter is India’s distinctive shrimp farming approach. Unlike many traditional agricultural sectors, shrimp aquaculture in India is driven by over 300,000 small and marginal farmers. These farmers often work under contract farming arrangements or are directly connected to processing units for export. The government has been a strong supporter of this industry, rolling out various initiatives like the Pradhan Mantri Matsya Sampada Yojana (PMMSY) in 2020, which set aside more than ₹20,000 crore to enhance fisheries infrastructure, seed supply, and cold chain logistics. However, critics in the U.S. contend that these government incentives skew market dynamics, giving Indian exporters an unfair edge.
The shrimp farming industry in India is already feeling the pressure from rising feed costs, diseases like White Spot Syndrome Virus (WSSV), and a dwindling number of international buyers due to global inflation. The new tariff is likely to push U.S. buyers to look elsewhere, turning to sources like Ecuador, Vietnam, or even domestically farmed shrimp, which are now more affordable. Indian exporters are worried about potentially losing up to 40% of their market share in the U.S. For farmers, this could translate to lower prices at the farm gate, delayed payments from exporters, and less access to quality inputs.
The Indian government, represented by the Ministry of Commerce and Industry, has voiced its disappointment over the U.S. decision and is gearing up to contest the tariff increase at the World Trade Organisation (WTO). Commerce Minister Piyush Goyal remarked that this action is “discriminatory and goes against the principles of free and fair trade.” At the same time, India is looking into diplomatic avenues to negotiate a waiver or a temporary rollback, highlighting its commitment to upholding international quality standards and supporting the livelihoods of millions through sustainable aquaculture.
In the meantime, Indian exporters are gearing up for the challenges ahead by broadening their export options. Many are looking towards Europe, Japan, South Korea, and the Middle East regions, known for their focus on quality and political neutrality. Indian seafood exporters are also pushing the Marine Products Export Development Authority (MPEDA) to expedite investments in value-added shrimp products, such as pre-cooked or marinated shrimp, which tend to fetch higher prices and can be marketed under various trade classifications.
Experts suggest that while the immediate effects on Indian shrimp exporters and farmers may be tough, this crisis could also pave the way for much-needed structural changes. For too long, Indian shrimp exports have depended on a limited range of low-value products and a single market, which made up over 35% of total shrimp exports in 2024. By focusing on product innovation, obtaining sustainability certifications, and implementing stricter traceability systems, India could regain its competitive advantage in a more varied and resilient manner.
Looking ahead, a lot will hinge on how quickly the Indian government acts with both diplomatic and financial strategies. Emergency relief funds for shrimp farmers, subsidies for transitioning to antibiotic-free aquaculture, and trade agreements with emerging markets could help soften the impact. At the same time, the shrimp tariff situation highlights a broader global shift towards protectionism and food sovereignty. For India, this serves as a wake-up call, not just to respond through policy and advocacy, but also to transform its seafood industry for a more unpredictable and demanding global market.
As the July 1 deadline approaches, all eyes are on what New Delhi will do next and how flexible Washington might be. Right now, the situation has shifted, and India’s shrimp industry needs to steer through these turbulent times with both resilience and agility.
Written by Ratisha Khare
