Indian shrimp exporters are currently grappling with significant challenges due to new tariff barriers and changing dynamics in global seafood trade. Here’s an in-depth look at the situation, with major data points summarized in table form.
Key Challenges and Industry Data
- New Tariffs Imposed: Indian shrimp exporters now face fresh U.S. tariffs on top of existing duties, making India one of the highest-taxed sources of shrimp in the U.S. market.
- Export Volume Decline Expected: Leading ratings agency Crisil anticipates a 7-9% drop in India’s shrimp export volumes as a direct result of these tariffs.
- Profit Margin Pressure: Operating margins for exporters are forecasted to shrink by 50-100 basis points, put under further strain by intense price competition from Ecuador.
- Heavy U.S. Market Reliance: The U.S. market absorbs around 48% of India’s shrimp exports, highlighting the sector’s vulnerability to U.S. trade policies.
- Unfavorable Comparison with Ecuador: Ecuador, the world’s largest shrimp exporter, enjoys a much lower U.S. tariff rate (about 10%), increasing the price disadvantage faced by Indian exporters.
- Government Support Initiatives: India’s government is attempting to cushion the impact through the Pradhan Mantri Matsya Sampada Yojana (PMMSY), which aims to modernize infrastructure and reduce post-harvest losses.
- Record Export Volumes: Despite these hurdles, India set a record by exporting 1,781,602 metric tons of seafood valued at roughly ₹60,523.89 crore in the financial year 2023-24.
- Worsening Credit Conditions: Increased costs and declining margins are expected to further weaken the creditworthiness of Indian shrimp exporters.
Key Data Table
| Key Aspect | Recent Data/Impact |
|---|---|
| New U.S. Tariffs | Adds to existing duties, making India highly taxed |
| Anticipated Export Volume Decline | 7-9% (Crisil Ratings) |
| Operating Margin Impact | Decline by 50-100 basis points |
| U.S. Market Share in Exports | 48% |
| Ecuador’s U.S. Tariff Rate | Around 10% |
| India’s Seafood Export Volume FY24 | 1,781,602 metric tons |
| India’s Seafood Export Value FY24 | ₹60,523.89 crore |
| Key Government Scheme | Pradhan Mantri Matsya Sampada Yojana (PMMSY) |
| Projected Credit Profile | Further strain due to higher costs and tariff impact |
Conclusion
India’s shrimp export sector is at a crossroads, contending with heavy U.S. tariffs, fierce competition from lower-tariff countries like Ecuador, and a highly concentrated export market. While government support schemes offer some relief, exporters must navigate worsening credit conditions and shrinking profit margins unless global trade terms improve or new markets are developed.
Glottis Limited 
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