A group of twelve men bantered and whistled while entering a shrimp pond in the coastal region of Andhra Pradesh, India, dragging a large net behind them in an attempt to catch as many shrimp as possible. Despite the jovial atmosphere, there was underlying worry about the impact of the 50 percent tariffs imposed by the United States on Indian exports, particularly affecting the frozen shrimp industry in India.
Bhaskar Kokkiligadda, one of the daily laborers working in the area near Pedapatnam, Andhra Pradesh, expressed the desperation felt by many in the industry due to the tariffs. Previously, the U.S. was the leading market for India’s shrimp exports, accounting for over 40 percent of the market share. However, with the tariffs in place, shrimp harvesting has become more sporadic, and a significant portion of the catch is being stored in ice and containers as shipments to the U.S. have dwindled.
Workers like Kokkiligadda have seen a reduction in workdays and are facing wage cuts, with some volunteering for reduced pay and others showing up for work even when not required in the hopes of earning extra money. The situation is dire for India’s shrimp industry, which supports over a million jobs across export companies, processing plants, and small-scale farms.
The impact of the tariffs is particularly severe in Andhra Pradesh, where a large percentage of India’s shrimp is produced, destined for the U.S. market. The initial 25 percent tariff on Indian exports was doubled to 50 percent by U.S. President Donald Trump in response to India’s crude oil purchases from Russia. This has given Ecuador, India’s main competitor in shrimp exports, a competitive advantage with a lower tariff of 15 percent.
Praveen Sabbineni, a shrimp farmer with multiple farms in Andhra Pradesh, noted a nearly 40 percent decrease in the prices he receives for his shrimp, leading many farmers to contemplate abandoning shrimp farming altogether. Despite the state government’s efforts to alleviate the impact through electricity subsidies, farmers like Edukal Basani are struggling to make ends meet, with Basani even considering leaving the industry.
The situation is equally challenging for workers in over 300 processing plants, where predominantly women labor in peeling and deveining shrimp. Many of these women, like Lalitha Rajeshwari, depend on their meager daily wages to support their families. Efforts are being made to secure a trade deal with the U.S. to mitigate the tariffs’ effects, but negotiations face hurdles regarding trade barriers and sectoral openness.
The uncertainty caused by the tariffs has left many in the industry anxious about their livelihoods, with workers like Radhika Enti expressing concerns about the potential closure of processing plants and its impact on their families. The overarching sentiment is one of worry and precariousness as the frozen shrimp industry in India grapples with the aftermath of the tariffs.
