In FY25, India exported around $5 billion of shrimps, with the US accounting for around 48 per cent of this
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India’s shrimp export volume is set to fall 15-18 per cent this fiscal with the US rising tariff to 58.26 per cent, according to Crisil Ratings. Realisations would fall, too, even as exporters look to change their product mix and scout for alternative export destinations.
The revenues, which were stagnant for the past four fiscals, will decline 18-20 per cent despite some cushion from a surge in shipments in the first quarter in anticipation of the tariff hike.
In fiscal 2025, India exported around $5 billion of shrimps, with the US accounting for around 48 per cent of this.
The lower revenues, coupled with the inability to pass on the tariff burden to customers, will erode the operating profit margin by 150-200 basis points. The combination of lower revenues and subdued margins will weaken the debt protection metrics of players.
Preferred destination
The US has long been a preferred destination for shrimp exporters because of easy market access, higher growth prospects, and better profit margin and repeat customer approvals.
Rahul Guha, Senior Director, Crisil Ratings said “the headwinds will impact processors and discourage farmers from continuing to invest in shrimp culture. Farmers incur upfront costs for land lease, seed and feed.
DV Swamy, Chairman, the Marine Products Export Development Authority (MPEDA), said “the Indian seafood sector has successfully navigated numerous challenges in the past, and we are confident that this situation will also yield favourable outcomes for us”.
“We anticipate a substantial realignment of suppliers towards the US market, which will create opportunities for the Indian seafood sector in other markets as well. MPEDA has already commenced efforts to diversify markets, with trade delegations having previously visited Vietnam and Japan. Currently, another delegation is engaged in discussions in China. The feedback from these markets has been highly positive and field reports suggest an encouraging outlook from both the European Union and Japan, he said.
Sector seeks govt, financial support
“If the high tariff structure remains in place, Indian exporters will be left with no option but to look for other markets. This will be done by expanding our presence in already existing markets and by seeking new markets, said K.N.Raghavan, secretary-general of Seafood Exporters Association of India.
It is likely that export turnover may see a dip till the situation stabilises. As the quality of Indian seafood meets with global approval and there are no sustainability related issues, the sector is confident that the present crisis can be overcome successfully, he said.
“However, we need the support of government and the banking and financial institutions to tide over the immediate constraints related to cash flow on account of sudden stoppage of exports to the US, he said.
Published on August 29, 2025