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Shrimp Exports
Shrimp exporters' revenue is likely to decline 12 per cent year-on-year in 2025-26, hit by the steep tariffs imposed by the US, effective August 27, a report said on Wednesday. The US is India's most critical market for frozen shrimp, representing 41 per cent of the export volume and 48 per cent of the value in FY25, India Ratings and Research (Ind-Ra) said in the report. The 50 per cent reciprocal tariff (58 per cent effective tariff rate after additional anti-dumping duty and countervailing duty) is expected to significantly impact trade flows, eroding India's cost competitiveness against its peers, namely Ecuador, Vietnam, and Indonesia and thus impacting export volumes, it added. As per Ind-Ra's analysis of India's major shrimp companies, aggregate revenue could decline 12 per cent year-on-year, while margins could compress around 150 bps year-on-year in FY26. Ind-Ra also expects some working capital stress to emerge. "The steep reciprocal tariff in the key export market of th
India's shrimp export volumes are expected to contract by 15-18 per cent this fiscal following the US decision to raise import tariffs on the commodity to 58.26 per cent from August 27, a report said on Friday. This will lead to a fall in realisations even as exporters look to change their product mix and scout for alternative export destinations, the report by Crisil Ratings said. Thus, revenues, which were stagnant for the past four fiscals, will decline 18-20 per cent year-on-year this financial year despite some cushion from a surge in shipments in the first quarter in anticipation of the tariff hike. In FY25, India exported around USD 5 billion of shrimps, of which the US accounted for around 48 per cent. Lower revenues, coupled with the inability to pass on the tariff burden to customers, will erode the operating profit margin by 150-200 basis points. The combination of lower revenues and subdued margins will weaken the debt protection metrics of players, following which the
The Seafood Export Association of India has approached the ministries of commerce and finance to seek emergency financial support as USD 2 billion worth of shrimp exports to the US face severe disruptions due to increased tariffs imposed by President Donald Trump, a statement said on Sunday. The association has requested a 30 per cent increase in working capital through soft loans, with margins covered by interest subvention and a 240-day moratorium for pre- and post-packaging operations. "Close to USD 2 billion worth of shrimp exports face severe disruptions," Seafood Export Association of India (SEAI) Secretary General K N Raghavan told PTI, adding that Trump last week further increased reciprocal tariffs from 25 per cent to up to 50 per cent. India exported USD 2.8 billion worth of shrimps to the US in 2024 and has shipped USD 500 million worth so far this year. The new duties make Indian seafood significantly less competitive compared to China, Vietnam and Thailand, which face U
Indian shrimp exporters are keeping their fingers crossed as the US is set to begin its review of anti-dumping and countervailing duties on shrimp next month, and are seeking government intervention to help secure relief amid stiff global competition, industry experts say. The exporters said that the formula of the US to calculate these duties is incorrect, and the Indian government should take up the issues with them bilaterally, as domestic traders are facing tough competition from Ecuador and Vietnam in the American market. "The US authorities consider India's RoDTEP and duty drawback schemes as incentive schemes, which is not the case. Both are WTO-compliant duty refund schemes only," Kolkata-based seafood exporter and MD of Megaa Moda Yogesh Gupta said. He added that the US uses a 'zeroing' method to impose anti-dumping duty on shrimp, which is not correct and needs to be re-looked as it distorts the calculation of the margin of dumping. He said that exporters are concerned an