In Andhra Pradesh, a state on the southern coast of India, 46-year-old shrimp farmer V. Srinivas is considering a career change. U.S. President Trump is set to impose tariffs of up to 50% on Indian shrimp products, severely impacting local exports to the U.S. Srinivas, like many others in the industry, is now contemplating switching to alternative businesses.
Andhra Pradesh is a major hub for Indian shrimp exports to the U.S. Over the years, tens of thousands of farmers have invested hundreds of thousands of dollars in cultivating shrimp in saline ponds, making India the largest shrimp supplier to the U.S. Retail giants like Walmart and Kroger are among the buyers.
However, since Trump announced the tariffs, Indian exports to the U.S. have stalled. Exporters have reportedly lowered purchase prices by nearly 20%, erasing profit margins for shrimp farmers. Srinivas revealed that he currently carries debts of around $45,800 and has already mortgaged his assets. “I am considering switching to fish farming. At these prices, there’s simply no profitability, let alone repaying debts.”
Currently, the U.S. imposes a 25% tariff on Indian shrimp exports, with an additional punitive 25% tariff scheduled to take effect on August 27 due to India’s purchase of Russian oil, bringing the total tariff rate to 50%, the highest among major economies.
In contrast, India’s main competitor, Ecuador, levies only a 15% tariff on shrimp exports to the U.S., significantly boosting its industry competitiveness. Jose Antonio Camposano, the president of the Ecuadorian Aquaculture Chamber, stated that if India withdraws from the U.S. market, it presents an opportunity for Ecuador to enter.
While India also exports shrimp to markets like China, Japan, and the UK, and may explore new markets, Pawan Kumar, president of the Seafood Exporters Association of India, admitted that it won’t be an overnight success.
It’s estimated that Andhra Pradesh has around 300,000 shrimp farmers, with products sold to the U.S. by dozens of exporters. Kumar pointed out that American buyers have largely stopped placing orders, leaving both importers and exporters unable to absorb the high tariffs and forced to lower purchase prices for shrimp farmers.
Gopinath Duggineni, a union leader in Ongole, emphasized, “During good times, our net profit was around 20% to 25%. Now, all of that is gone. What else can we save?” He added that shrimp farmers are gearing up to seek financial aid from local government.
Among the 12 shrimp farmers interviewed by Reuters in Andhra Pradesh, six expressed intentions to suspend shrimp farming and switch to fish farming, vegetable retailing, or other local businesses, while the other six are adopting a wait-and-see approach. Each shrimp farming cycle lasts over two months, with costs such as electricity, feed, and land rent remaining high, squeezing profit margins even further.