Overview of India's Shrimp Export Situation
India's seafood exporters are gearing up to ship a substantial volume of shrimp to the United States, following a significant change in tariff policies by the US administration.
Tariff Changes and Impact
- The shipment volume is estimated to be between 35,000-40,000 tonnes.
- US President Donald Trump paused a planned increase in reciprocal tariff from 26% to a reduced 10%.
- The temporary reprieve effectively maintains a 10% tariff for all countries except China, which is subject to a 145% duty.
Current Customs Duty Structure
- Indian shrimp exports to the US currently face a total customs duty of 17.7%, broken down as follows:
- 5.7% in countervailing duties.
- 1.8% in anti-dumping duty.
Industry Implications
- Approximately 2,000 containers of shrimp that were delayed are now being processed for export.
- The 90-day pause gives exporters a chance to fulfill contracts without incurring additional costs.
- Indian exporters often cover tariff costs under delivery duty-paid arrangements.
Market Dynamics
- The US remains India's largest shrimp market by volume and value.
- In the 2023-24 fiscal year, India exported shrimp worth $2.7 billion to the US.
Strategic Recommendations
- Seafood Exporters Association of India Secretary General K N Raghavan emphasized the need for government intervention to secure a "level-playing field" in upcoming trade talks.
