 "Indian shrimp sector crisis, US tariffs on shrimp exports, shrimp export losses India, $1 billion shrimp loss, vannamei shrimp exports, 50 count shrimp price drop, farm-gate shrimp prices India, Rs 70/kg shrimp price fall, Indian seafood export impac")
India’s seafood industry is steadily widening its global presence, reducing its heavy dependence on the United States (US). Exporters are now focusing on new markets to cushion the impact of rising tariffs imposed under the Trump administration.
India’s shrimp exports continued to perform well in the first five months of FY26, according to CareEdge Ratings. Export value grew 18 per cent year-on-year to $2.43 billion, supported by an 11 per cent rise in volumes to 348,000 metric tonnes (LMT).
This growth was largely driven by a sharp rise in non-US markets. Export value from these regions jumped 30 per cent ($1.38 billion vs $1.06 billion), showing a clear move by Indian exporters toward diversified global markets. Non-US markets, which made up 51 per cent of exports in 5M FY25, expanded to 57 per cent during the first five months of FY26 (5M FY26).
US shipments slow after tariff hike
Exports to the US, traditionally India’s biggest shrimp market, saw modest growth of around 5 per cent during the same period. This slowdown was expected, especially after a steep decline in August 2025, following heavy shipments earlier in the year. Exporters had front-loaded orders ahead of new reciprocal tariffs that came into effect on August 27, 2025.
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Since early FY26, Indian shrimp entering the US market has been hit by multiple taxes, including higher reciprocal duties on top of existing anti-dumping and countervailing duties. Between April and August 2025, India’s effective tariff rate was around 18 per cent, higher than 13-14 per cent for competitors Ecuador and Indonesia.
After August, India’s tariff burden jumped to 58 per cent, while tariffs for Ecuador and Indonesia ranged between 18-49 per cent. This has reduced India’s price competitiveness in US retail and foodservice channels, giving rival suppliers an edge.
In May 2025, exports to the US touched $0.27 billion, crossing last year’s average monthly level. Typically, US demand peaks in the third quarter, but this year the peak came earlier due to advance shipments. CARE Ratings expects exports to the US to fall in the second half of the year. Signs of this are already visible, with August 2025 shipments dropping 35 per cent compared with July.
Non-US markets drive most of the growth
Exports to non-US destinations continued to grow at a strong pace. In 5M FY26, shipments to these markets rose 30 per cent year-on-year to $1.38 billion, supported by steady demand across regions.
China remained the top non-US buyer, with shipments increasing 16 per cent. Exports to Japan, previously a major reprocessing centre, were mostly stable. Vietnam saw a sharp rise, with export value doubling to $0.18 billion, reflecting its growing role as a re-export hub.
Exports to Belgium also doubled to $0.14 billion, helped by stronger demand in the European Union and improved traceability compliance by Indian exporters.
Overall, 86 per cent of the incremental export value in the first five months of FY26 came from non-US markets.
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