For over 20 years, V. Srinivas built a stable livelihood farming shrimp along India’s southern coastline, benefiting from the country’s rise as the top exporter of shrimp to the United States. But that stability is now under threat, with former US President Donald Trump pushing for a steep 50 percent tariff that has left many shrimp farmers exploring alternative ways to make a living.
Andhra Pradesh, India’s largest shrimp-producing state, has long been the backbone of these exports, with farmers investing heavily to raise premium-quality shrimp in saltwater ponds. The sudden tariff hike has shaken the market, prompting Indian exporters to reduce the rates they pay farmers by nearly 20 percent, cutting deeply into already slim margins.
Srinivas, 46, from Veeravasaram village, is now weighing a shift to fish farming. Already burdened with loans and having mortgaged his property, he says the current shrimp prices will not allow him to break even, let alone repay his debt of over 45,000 US dollars.
The United States remains the biggest buyer of Indian shrimp, with large chains like Walmart and Kroger among the key customers. India exported 7.4 billion US dollars worth of seafood last year, with shrimp accounting for nearly 40 percent of that figure. But the landscape is rapidly changing. Washington has already imposed a 25 percent tariff on Indian shrimp, with another 25 percent due to take effect on August 27, citing India’s continued purchase of Russian oil.
In comparison, Ecuador, India’s primary competitor in the US shrimp market, faces just a 15 percent tariff, making its products more attractive to American buyers.
Roughly 300,000 farmers in Andhra Pradesh are engaged in shrimp cultivation, supplying dozens of exporters who cater to US demand. But now, orders from American clients have stalled, said Pawan Kumar, head of the Seafood Exporters Association of India. With neither buyers nor exporters willing to shoulder the tariff burden, the fallout is being passed on to farmers through lowered purchase rates.
Although India also exports shrimp to markets like China, the UK, and Japan, expanding trade in those regions will take time, Kumar said.
The sudden disruption has left many farmers grappling with uncertainty. Of 12 farmers Reuters spoke to in Andhra, six are considering exiting shrimp cultivation altogether in favor of fish farming, vegetable vending, or small local businesses. The rest are adopting a wait-and-watch approach. Each shrimp farming cycle takes roughly two months, with operating costs such as feed, power, and land rent continuing to climb.
Even during good times, we barely earn a 20 to 25 percent margin, said Gopinath Duggineni, a union leader from Ongole. With prices falling and costs remaining high, it is just not sustainable. He added that farmers plan to seek government intervention for support.
Meanwhile, Ecuador is closely monitoring India’s tariff troubles. Its producers are cautious about expanding operations but are poised to capitalize if India is forced to scale back its US exports. Jose Antonio Camposano, president of Ecuador’s National Chamber of Aquaculture, noted that if India pulls out of the US market, Ecuador stands to gain just as China is a key buyer for their exports.
