Seafood at a wholesale market.
Credit: REUTERS
Hyderabad: Andhra Pradesh Minister for Agriculture and Fisheries, Kinjarapu Atchennaidu Tuesday hoped that the US government's decision to reduce tariffs on Indian marine food exports from 25% to 18% would provide significant relief to marine food exporters in the state, particularly the aqua sector.
Talking to reporters in Amaravati on Tuesday he recalled that the previous 25% tariff, combined with punitive duties, had imposed a total burden of 50-58%, causing Indian marine food exports to the US to drop by about 15% in volume to 2.01 lakh metric tonnes and 6.3% in value to $1.72 billion from April to November 2025. Frozen shrimp, the primary export to the US, was severely impacted.
With the tariff now cut to 18%, the competitiveness of Indian marine products in the US market will improve significantly, he noted. This has created favorable conditions for resuming stalled new export orders and releasing stocks held in warehouses. Exports to the US could rise 10-15% in the coming months, potentially returning to pre-tariff levels in the second half of 2025-26.
Processor profit margins, which fell to 5-5.5% during high-tariff periods, are expected to rebound to 7-8%. Duty concessions on key inputs for marine food processing in the Union Budget 2026 will provide additional support.
Alongside the US market recovery, Indian marine food exports to non-US markets like the European Union, China, Vietnam, Russia, and the UK remain steady, he said. Non-US markets now account for about 57% of shrimp exports in early 2025-26, signaling successful market diversification.
This tariff reduction is a boon for Andhra Pradesh, India's top marine food producer. Export revival will bring income stability to fishermen and aqua farmers, boost employment, and enhance Gross Value Addition (GVA) in the state's fisheries and aqua sectors, the minister said.
Citing MPEDA estimates, he said national marine food exports could reach 14-15 lakh metric tonnes in 2025-26. Overall, the 18% US tariff cut will be pivotal for reviving Indian marine exports, boosting global competitiveness, and ensuring sustained growth in Andhra Pradesh's fisheries sector, the minister added.