Chennai– Tamil Nadu’s seafood exporters have cut production by nearly half after steep U.S. tariffs on Indian marine products took effect on August 27, industry officials said.
Of the 25 seafood-exporting firms operating in the state, 15 are based in Thoothukudi, a major hub for shipments of frozen shrimp, squid, octopus, fish, and crabs to markets in the U.S., Japan, and Europe. These companies source from 13 coastal districts, process locally, and export via VOC Port.
The new tariff regime has delivered a heavy blow to the sector, with levies now comprising a 50 percent basic duty, 2.65 percent anti-dumping duty, and 5.77 percent countervailing duty. Exporters said the constant revisions to reciprocal tariffs have created uncertainty and made it difficult to plan shipments.
Nearly 60 percent of Vannamei shrimp from Tamil Nadu is destined for the U.S. With the higher duties in place, exporters have been forced to scale back operations. Consignments, which already take 45 days to reach U.S. shores, now face delays and added financial strain.
Exporters who typically ship around 50 containers a month, including 20 bound for the U.S., have significantly reduced volumes in response to the tariffs.
According to the Marine Products Export Development Authority (MPEDA), India exported 17.81 lakh tonnes of seafood valued at Rs 60,523 crore ($7.38 billion) in 2023–24. Frozen shrimp accounted for 40 percent of the volume and nearly two-thirds of revenue. The U.S. was India’s largest buyer, importing 3.29 lakh tonnes worth $2.55 billion. Tamil Nadu contributed 89,001 tonnes, about 5 percent of the national share, dominated by cultured shrimp.
The crisis has been exacerbated by surging freight costs. Houthi rebel attacks in the Red Sea have forced vessels to reroute via the Cape of Good Hope, adding 9,000 nautical miles and further inflating shipping expenses.
Industry leaders warned that India risks losing competitiveness to rivals such as Ecuador and Indonesia, whose seafood exports face duties of only 15 to 19 percent in the U.S.
The Seafood Exporters Association of India in Tamil Nadu cautioned that the crisis threatens thousands of jobs in a labor-intensive industry and urged urgent intervention from the Centre to protect livelihoods and preserve India’s global market share. (Source: IANS)
