Tariff impact: Shrimp feed prices drop by ₹4/kg to reimburse farmers

The relief has also come at a time when shrimp production season is reaching its peak

The Trump tariff imbroglio continues to impact the Indian shrimp sector. Starting this week, most shrimp feed manufacturers will lower their prices by at least ₹4 per kg to compensate farmers for the drop in farm-gate rates due to uncertainty in a major export destination, according to sources.

 

Traders said that now, a 25kg bag of feed meant for Vannamei Shrimps (the most common variety exported to the US) will be priced between ₹2,667-₹2,701.75 depending on the grades, while a 25kg bag of feed meant for Tiger Shrimps will be priced between ₹2,947-₹2,995, depending upon the grades.

 

The price of a 25kg bag of some of the other better known brands is now being quoted between ₹3647.75-₹3672.75, also depending upon the grades.

 

“As the purchase price of shrimp by the processors has dropped due to confusion over exports to the US, feed meal makers have also lowered their prices so as to give some relief to the farmers,” Divya Kumar Gulati, chairman of Compound Livestock Feed Manufacturers Association (CLFMA), a body representing India’s livestock sector told Business Standard.

 

Prices of Indian Vennamei Shrimp of 20-50 counts have dropped by almost ₹30—₹50 per kg after the US imposed a steep tariff of 26 per cent.

 

The imposition of US tariffs, which is now on a 90-day pause, with other duties and levies would have made Indian shrimp costlier by almost 40 per cent, leading to a reduction in demand.

 

Prior to the imposition of tariff, Indian shrimps of 20-50 counts were selling at prices ranging between ₹470-₹350 per kg.

 

India exported almost $2.3 billion worth of shrimps to the US markets in FY24, which was more than 90 per cent of the total seafood exports to the US. The US comprised 66 per cent of the total value of shrimps that India exported to the world in FY24, trade data showed.

 

Few days back, the Andhra Pradesh state government had constituted a 16-member high-powered panel to study the challenges that tariffs posed on India’s marine food products, a sector which was seen to be as the worst affected.

 

Sources said one of the mandates of the committee, which was formed before the pause on tariffs, was to study the India and Ecuador shrimp production patterns and exports.

 

It would also look into steps to increase exports of Indian shrimps to the European Union, China and Japan.

 

Ecuador has emerged as one of the major competitors for India’s shrimp exports to the US after President Donald Trump imposed 26 per cent additional duty on India, while keeping it at 10 per cent for Ecuador. Andhra Pradesh exports the maximum quantity of shrimps from India.