The Indian seafood export industry is staring at a business loss opportunity of almost INR 24,000 crore (USD 2.74 billion) to the US due to the country’s doubling of existing tariff to 50% on India.
In economictimes.indiatimes.com , Pawan Kumar G, president, Seafood Exporters Association of India said,
“We are shocked. This is a doomsday for the seafood industry. It will have an effect on the farmers too, We will need hand holding by the government.”
Ecuador, India’s closest competitor for seafood exports, which is geographically closest to the US, will pay only 10% import duty in the US market, while Indonesia will pay 19% and Vietnam pay 20%. The US accounts for almost 40% of the total Indian seafood exports of INR 60,000 crore (USD 6.85 billion). India exports mainly shrimp to the US.
An exporter from the west coast of India said as the industry has about 15% of annual sales as inventory at any given time, the exporters will face losses on this volume.
The Indian industry employs an estimated 20 million people. As the seeding season for next harvest is currently underway, the industry fears that farmers may stop farming operations.
Executives said a lot will depend on how big buyers like Walmart and Costco negotiate with Indian exporters and how much margins they can pass.
“If this high US tariff continues where India is at disadvantage, Indian seafood exporters will have to make inroads into other markets,” another exporter said.
