According to the state government’s estimate last August, there are around 6.5 lakh aquafarmers in the state, and 30-40 lakh others work at various stages of the industry. (File/Pixabay)
Andhra Pradesh’s shrimp and aquaculture farmers are breathing a sigh of relief after US President Donald Trump reduced tariffs to 18 per cent on all products from India. “If the additional tariffs imposed on India had continued for another two or three months, the entire industry would have collapsed. We now have a fighting chance, and we can regain the US market, which had veered towards Ecuador. The trade deal and the tariff reduction have come at the right time,” said D Dileep, secretary (Andhra Pradesh region) of the Seafood Exporters Association of India.
Andhra Pradesh Minister N Lokesh Naidu, whose party, the TDP, is a BJP ally, said the reduced tariff is a shot in the arm for Andhra Pradesh’s seafood exports. “It is a big boost to AP’s seafood and agri exports,” he said.
Dileep said that since October, there have been no orders from the US due to the tariffs that touched 59.72 per cent. Last August, Trump announced 25% additional tariffs over and above the 25% announced earlier, as well as the 5.76% countervailing duty and 3.96% anti-dumping duty.
“Ecuador, which has relatively less steep tariffs, gained access to the US markets, replacing our products. It will be slow, but I am confident we will regain the US markets soon,” he said.
Sources in the state government said that plans to close the struggling aqua farms will be reconsidered as lakhs of farmers may once again find a source of livelihood if exports restart.
While the state was exporting shrimp and fish products to other states, foreign exports had taken a major hit. The state government was providing support with subsidies and a rebate on fish feed, and Chief Minister N Chandrababu Naidu had written to Prime Minister Narendra Modi several times to help the state’s aqua farmers and resolve the tariff issue.
Members of the Seafood Exporters Association said that activity at the state’s aqua farms, hatcheries, shrimp processing units, packaging units, cold storages, and ice factories had almost come to a standstill, but the latest news has invigorated them.
India exports approximately 8 lakh tonnes of shrimp a year, and Andhra Pradesh produces over 60% of this. The US is a predominantly premium market for India’s shrimp exports. Almost all major superstores have Indian shrimp products, and 40% of the shrimp in those stores are from Andhra Pradesh. Of the 241 aquaculture exporters in the country, 171 are based in Andhra Pradesh. At a meeting with the exporters last week, Naidu had hinted that there may be a resolution on tariffs soon.
Exporters warned that although the reduction in tariffs is good news, progress to get back into the US market would be very slow. “Ecuador is closer to the US, and the tariffs are only about 15%. After Trump’s additional tariffs, Ecuador’s exports to the US more than doubled. That country still has an advantage and recapturing the markets will be tough,” one exporter said.
Vice chairman of Andhra Pradesh’s State Aquaculture Development Authority, Anam Venkata Ramana Reddy, said the tariff reduction should revive the industry. “On top of steep tariffs, the aqua farms were hit by enterocytozoon hepatopenaei (EHP) parasite disease, which ravaged the farms. It is under control now, and aqua farmers are already celebrating getting back to work. Most farmers shifted to growing smaller shrimp, which is cheaper, for domestic markets, though it generates less profit. I am confident they will start growing the export variety bigger prawns soon,” he said.
