Andhra Pradesh Chief Minister N. Chandrababu Naidu has written a letter to Union Minister for Commerce and Industry, Piyush Goyal, seeking immediate intervention to protect the state’s aquaculture sector from a severe crisis following the imposition of steep import tariffs by the United States on Indian seafood exports.

In the letter, the Chief Minister highlighted that the United States has imposed a 27% import duty on seafood products imported from India, effective from April 5, 2025. This, he noted, has had a devastating effect on Andhra Pradesh’s shrimp exporters, farmers, and the broader aqua industry. In the financial year 2023–24 alone, India exported seafood worth $2.55 billion to the U.S., with shrimp accounting for nearly 92% of the total. The new tariff has rendered Indian products less competitive, especially when compared to Ecuador, which is subjected to only a 10% duty.

Chandrababu Naidu further pointed out that Indian exporters are already bearing a 5.77% countervailing duty (CVD), creating a total tariff burden of over 32%. 

This results in a nearly 20% cost disadvantage when compared to competitors like Ecuador. He warned that such a disparity threatens the viability of Indian seafood in the global market and is pushing Andhra Pradesh's aqua economy into a state of distress.

Adding to the challenges, previously placed orders are now facing uncertainty. Products that have already been processed, packed, and stored in cold storage facilities and ports are now subject to the newly enforced tariff, causing financial stress for exporters. The Chief Minister also expressed concern over trade dynamics with the European Union, where Indian exporters face 50% inspection rates and import duties ranging from 4% to 7%, along with non-tariff barriers. Meanwhile, Vietnam enjoys zero-duty access to the EU market under a Free Trade Agreement, giving it a clear advantage.

Naidu explained that other Asian nations such as Vietnam, Thailand, and Japan had been importing raw shrimp from India, processing it, and re-exporting to the U.S. However, due to the high tariffs on finished products, these countries are now cancelling orders, further affecting Indian exporters.

In Andhra Pradesh, the ground reality is grim. Cold storages are operating at full capacity, and exporters have halted procurement due to the uncertainty. As a result, farmers are left without a place to store or sell their harvest, creating panic and confusion in the coastal regions. Further complicating the crisis is the fact that a fresh harvest is underway, and there are no takers because of the increased costs of exports.

The Chief Minister emphasized the need for urgent diplomatic negotiations with the U.S. to seek exemption for Indian shrimp from the new tariffs. He urged Minister Goyal to take up the issue at the highest level and ensure the continuation of India’s seafood exports without added burdens. He also appealed for a broader strategy to address trade disadvantages faced by Indian exporters in both U.S. and EU markets.

Naidu concluded his letter by stressing that timely intervention by the Centre could protect the livelihoods of lakhs of people across Andhra Pradesh who depend on the aquaculture industry for their survival. He reiterated that the aqua sector is a vital contributor to the state’s GDP and must be supported through this challenging phase.