Andhra CM Urges US Tariff Exemption for Shrimp Exports

Amaravati, Apr 6 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu on Sunday urged the Centre to seek a US tariff exemption for shrimp exports, warning that the state's aqua sector faces collapse due to the sudden duty hike.

Naidu wrote to Union Minister of Commerce and Industry Piyush Goyal, appealing for urgent support for the state's aqua sector, which is reeling under the impact of increased US tariffs, said a press release.

The United States has imposed a 27 per cent import duty on Indian marine exports effective from April 5—a move that severely affects shrimp, which accounts for 92 per cent of the trade.

"The aqua sector is the backbone of our economy, and these tariffs are a blow we cannot endure," Naidu said in the release.

The TDP chief pointed out that the tariff hike has resulted in cold storages being filled and exporters halting procurement, threatening the livelihoods of lakhs of people dependent on the state's fisheries industry.

He noted that in 2023–24, India exported marine products worth USD 2.55 billion to the US, but the new duty structure places India at a disadvantage compared to competitors like Ecuador.

Ecuador, which faces only a 10 per cent duty, enjoys nearly a 17 per cent advantage, significantly hurting Indian exporters' competitiveness.

Naidu also stated that harvested shrimp, already packed for prior orders, is now stuck at ports and in cold storages, incurring unexpected costs due to the tariff.

Globally, countries like Vietnam and Thailand are canceling orders from India, while the European Union is imposing additional barriers, including duties ranging from 4 to 7 per cent, the Chief Minister added.