50% US tariffs kick in from Wednesday: Shrimp crimp for sellers, consumers

A 50% import duty has slashed farm-gate shrimp prices in India while pushing up consumer prices in the United States

The 50 per cent tariffs on goods imported from India into the US, which kicks in on Wednesday, has equally impacted the shrimp market on both sides. 

The farm-gate price of shrimps in India has dropped by almost 30 per cent since the executive order on tariffs came in early August. 

Trade sources said in the US, the price of premium big-sized shrimps has jumped by almost 50 per cent in the last week to 10 days, in anticipation of higher cost from India.  India is a major player in the US shrimp market. 

“So, broadly, it is players at both ends of the shrimp spectrum, that is farmers in India and consumers in the US, who are currently bearing the brunt of this high tariff imposed by the US government,” Nitin Awasthi of InCred Equities told Business Standard.

Presently, the US big-sized premium shrimps are being sold at around $15-$16 per kg, traders said, which just a fortnight back was quoting at around $10-$11 per kg. 

In India, farm-gate prices of shrimps less than 50 counts had dropped by almost 20 per cent immediately after President Donald Trump signed the order imposing additional 25 per cent tariffs on India on top of the existing 25 per cent on August 6.

Thereafter, the rates have fallen by another 10-20 per cent before stabilising a bit, making life harder for Indian farmers.

But, the average export price of all varieties of Indian shrimps is holding steady at around $7 per kg as most global buyers are looking to pass on the high cost to consumers in the initial few weeks. 

Awasthi said going forward, a lot will depend on how the market adjusts with the changed dynamics. 

However, some market participants said that all is not lost for Indian shrimp farmers and the impact on farm-gate prices will taper off as this is not the main season for exports. 

 

“Most of the farmers are now stocking the shrimps which will now grow in the ponds. As the major export consignments get loaded just around Christmas, that is in the months of November and December, when also the harvesting of shrimps happen, farmers might be somewhat shielded from the major impact,” Divya Kumar Gulati, chairman of Compound Livestock Feed Manufacturers Association (CLFMA), a body representing India’s livestock sector told Business Standard. 

He said, in the meantime, the free trade agreements that India has signed and also the growing domestic market could provide some cushion to the market. 

“In some respect, this high US tariff is a blessing in disguise as it will compel us to look for newer markets and just not be dependent on the US,” Gulati said. 

The Indian shrimp exporters, meanwhile, have demanded credit lines at zero rate from the government to ensure that they are at least able to purchase the shrimps at farm-gate prices and there is no big drop in farmers’ realisations. 

India’s marine exports to the world annually is around ₹60,000-₹62,000 crore, of which the US alone accounts for almost 40 per cent. Shrimps account for 41 per cent of the volume and 66 per cent of the value of India’s total marine exports. 

According to the Marine Products Export Development Authority (MPEDA), India exported 716,004 tonnes of frozen shrimp worth $4.88 billion in 2023-2024. 

Of this, 297,571 tonnes went to the US. One species dominates the Indian shrimp story: Vannamei, which accounts for 87 per cent — or 625,475 tonnes — of total shrimp exports, with a value of $4.25 billion. The US market alone absorbs 54 per cent of that, followed by China at 16 per cent and the European Union at 9 per cent, MPEDA data shows.