AP commerce body urges Centre to protect shrimp sector from US tariffs

Don't want to miss the best from Business Standard?

Andhra Pradesh Chambers of Commerce and Industry Federation on Thursday appealed to the Centre to protect shrimp farmers and exporters with policy and financial interventions in the face of 50 percent tariffs and other taxes slapped by the US on Indian imports.

The president of the chambers, P Bhaskar Rao, said the sudden spike in US tariffs has put the livelihood of 28 million people who engage in aquaculture and allied sectors at risk.

"Unless urgent policy and financial interventions are made, India risks losing global competitiveness in seafood exports. We strongly urge the Union government to act swiftly in coordination with the state governments to safeguard this vital sector," said Rao in a press release.

According to the chambers, India is the second largest seafood exporter globally, accounting for exports worth Rs 60,524 crore or $ 7.3 billion in FY24, while the US alone imported 25 percent of this quantum.

Shrimp contributes over 40 percent of the total export quantity and more than 66 percent of export earnings at Rs 40,013 crore or nearly $ 5 billion.

Further, the trade body emphasised that Andhra Pradesh, being the largest shrimp-producing and exporting state in the country, stands to be affected most.

Low domestic consumption of only up to 400 grams per capita annually, overdependence on whiteleg shrimp, low levels of value addition and gaps in infrastructure such as cold chain, logistics and certification support are some major challenges faced by the shrimp sector, it said.

In this backdrop, the chamber proposed to the Centre a set of measures, which include nationwide campaigns to promote prawn and fish consumption, operationalisation of India's Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs).

Likewise, it called for diversification of export destinations to newer markets such as the UK, EU, South Korea, West Asia, Russia and China. It also demanded duty drawback and freight subsidies to offset tariff costs.

Similarly, the trade body called for export credit facilities, soft loans with interest subvention, and increased working capital limits to ease financial stress.