Trump tariffs cripple Andhra’s shrimp industry; Naidu writes to Centre

Andhra Pradesh’s aquaculture sector is in turmoil following a 26 per cent tariff imposed by US President Donald Trump. Concerns over the tariff have brought the shrimp export industry to a standstill.

Harvesting has halted, purchases are frozen, and prices have plummeted by 10 to 15 per cent. Export-ready containers are stranded, and distressed farmers are appealing for urgent intervention.

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The state has over 5.7 lakh acres under aquaculture, with Vannamei shrimp grown on 2.5 lakh acres. During the April-July harvest peak, thousands of tonnes are usually hauled daily. But this year, shrimp remain unharvested in ponds as the market collapses.

Andhra Pradesh leads India’s seafood exports, with Rs 19,420 crore worth of products shipped in 2023-24. The state accounts for 31 per cent of agri exports, far ahead of Kerala, Maharashtra, Tamil Nadu, and Gujarat.

Farmers bear the brunt

Farmers say they are unfairly shouldering the burden. “Processing units stopped sending trucks as soon as tariffs were announced,” Addala Trimurthulu, a farmer from West Godavari, told The Federal Andhra Pradesh. “Even a day’s delay in harvesting causes huge losses.”

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Gadiraju Sriramaraju, also from the district, lamented the unending challenges. “Feed and seed prices haven’t fallen. I farmed 15 acres, and at this rate, it’s a question of survival.”

In Penumantra, Jampana Satyanarayana saw purchases abruptly stop on his 10-acre farm. “Daily losses are mounting, but I can’t stop spending on upkeep,” he said.

Plummeting prices, rising losses

In January, 30-count shrimp sold for Rs 600 per kg. Today, it’s around Rs 400 – a Rs 200 drop. Even 50-count shrimp fetch only Rs 300. Amid power cuts, traders reduced prices by Rs 50, later raising them by Rs 30-40 briefly, before another round of cuts. Farmers say smaller sizes aren’t even in demand, and buyers insist on heavy discounts.

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With little oversight, exporters are slashing rates at will. Prices for 30-count shrimp fell from Rs 510 to Rs 420 in just 20 days, said Nagabhushanam, head of an aqua welfare society in East Godavari. “We’re losing over Rs 1 lakh per tonne,” he warned.

Economics of shrimp farming

Producing a kilo of shrimp costs Rs 300, but sales bring in only Rs 250-Rs 270, leading to a loss of Rs 40 per kilo, said Haribabu, a farmer from Kothapatnam in Prakasam district.

Larger shrimp bring higher prices. Count refers to how many shrimp makeup one kilo – lower counts mean larger sizes. Premium sizes fetch global demand, but if emergency harvests force smaller shrimp into local markets, they bring lower returns.

Currently, around 2,000 containers – 80,000 tonnes of shrimp – are ready for U.S. shipment. This stock, now subject to tariffs, may cost exporters nearly Rs 600 crore, according to the Seafood Exporters Association of India (SEAI).

Jobs, daily exports hit

On average, 800-1,000 tonnes are exported daily from Andhra. India exported over 7.16 lakh tonnes of shrimp in 2023-24 – 70 per cent from Andhra Pradesh. But all shipments have now halted.

The sector supports 3 lakh people directly and 7 lakh indirectly. Processing units, logistics, cold storage, and feed suppliers face the ripple effects. Experts warn that up to 7 lakh livelihoods are in jeopardy.

Farmers typically invest Rs 5 lakh per acre for a 3-month crop – Rs 1.5 lakh monthly. Feed alone makes up 60-70 per cent of costs. Andhra has 16 feed companies, charging up to Rs 121 per kg. Most farmers borrow to finance operations, and with sales stalled, the debt burden grows.

Chief Minister Chandrababu Naidu wrote to Union Minister Piyush Goyal on April 6, urging discussions with the US to exempt aqua exports from the tariff. The state is also consulting industry stakeholders. However, the Centre has yet to respond. Meanwhile, SEAI is intensifying pressure for intervention.

‘Crop holiday’ on the horizon?

Facing crushing losses, farmers are considering a “Crop Holiday” – suspending farming operations altogether. If implemented, it could economically devastate thousands and damage pond infrastructure. Aqua Farmers Association secretary Gajuraju Venkata Subbarao confirmed the option is under serious discussion.

In 2023-24, India exported seafood worth Rs 60,523 crore to 132 countries, ranking sixth globally. The US alone accounted for 34.5 per cent of this, followed by China (18.76 per cent), Japan (5.42 per cent), Vietnam (5.3 per cent), and Thailand (3.82 per cent). Frozen shrimp made up 40 per cent of these exports.

Given this dependence, Andhra’s farmers are urgently calling for immediate action from both state and Central governments.

What needs to be done

India must pursue bilateral talks with the US while exploring alternative markets like China, the EU, and Japan. Promoting value-added shrimp products and retail outlets is essential. Input costs must be reduced, and temporary financial relief should be provided to farmers.

(This article was originally published in The Federal Andhra Pradesh)