Tariffs threaten shrimp ecosystem, hatcheries and farmers hit hard

The upcoming festive season offers some relief, as exporters received sizeable orders to meet the demand
| Photo Credit:
REUTERS

After six weeks of 25 per cent tariffs and two weeks into the 50 per cent tariff imposed by the US, the shrimp ecosystem is under pressure, sending shockwaves across the country’s shrimp value chain.

“Hatcheries take the first hit as the farmers have stopped buying the shrimp seed stock, leading to an estimated loss of ₹150 crore,” Ravi Kumar Yellanki, President of All India Shrimp Hatcheries Association, told businessline.

With no clarity on the prospects of exporting their produce to the US, farmers are reluctant to buy the seed stocks. “Due to the current crisis, about 5 billion shrimp seeds, which have a short shelf life of 3-4 days, could not be sold and were consequently discarded,” he said.

Temporary relief

The upcoming festive season (Thanksgiving, Christmas, and New Year) offers some relief, as exporters received sizeable orders to meet the demand. “But what happens after that remains to be seen,” Yellanki said, hoping that the two countries would agree.

The advantage for India is that its shrimp taste appeals to the taste buds of the US consumers.

Indukuri Mohan Raju, President of the Prawn Farmers Federation, said the country had firm orders until November 15, as buyers are stocking up on the produce for the upcoming festive season. “Loading too has started,” he said.

“As soon as the 50 per cent tariffs kicked in, traders reduced prices by ₹80-100 a kg. However, we have heard that American traders are absorbing the tariff hike and passing it on to their customers. No impact on us yet, but exporters have reduced the price,” Duggineni Gopinath, Co-ordinator of the Southern Coastal Districts’ Prawn Farmers Association, said.

What they want

Shrimp farmers in Andhra Pradesh from four districts huddled together recently to discuss the crisis. The State contributes 50 per cent to the overall shrimp exports of ₹40,000 crore from the country.

They wanted the government to announce a minimum support price of ₹250-400/kg for different varieties of shrimp and to provide electricity at a subsidised rate of ₹1.50 per unit.

Published on September 12, 2025