{"id":50615,"date":"2025-08-06T18:58:53","date_gmt":"2025-08-06T13:28:53","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=50615"},"modified":"2025-08-06T19:12:40","modified_gmt":"2025-08-06T13:42:40","slug":"us-25-percent-tariff-andhra-pradesh-seafood-exports","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-08-2025\/us-25-percent-tariff-andhra-pradesh-seafood-exports","title":{"rendered":"US 25% Tariff Likely to Hit Seafood Exports from Andhra Pradesh"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/Fisheries<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>U.S. President Donald Trump announced <strong>a 25% tariff on Indian products;<\/strong> the <strong>aquaculture sector in Andhra Pradesh<\/strong> is likely to be severely affected.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Indian exporters are presently paying <strong>10% tariffs and additional anti-dumping duty of 4.5% and countervailing duty of 5.8%<\/strong>.\n<ul class=\"wp-block-list\">\n<li><strong>With the US announcing the tariffs of 25%<\/strong>, the exporters will face at least 15% additional duty over the existing tariff structure from August 7.<\/li>\n\n\n\n<li><strong>Ecuador<\/strong>, India&#8217;s closest competitor in sea food exports, <strong>has to pay only 10% tariff to the US while Indonesia pays 19% duty and Vietnam 20%.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Approximately 6.5 lakh aquaculture farmers<\/strong> cultivate shrimp, crab, fish, and other varieties in 5.7 lakh acres in Andhra Pradesh.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pressure on Coastal Economies:<\/strong> Andhra Pradesh, a major seafood exporter, may see local economic distress, affecting production, employment, and logistics.\n<ul class=\"wp-block-list\">\n<li>Decline in shrimp demand can disrupt cold chain infrastructure and allied services, further reducing efficiency in exports.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Decline in Export Revenue: <\/strong>The U.S. accounts for 34.53% of India&#8217;s seafood export value.\n<ul class=\"wp-block-list\">\n<li>Higher tariffs will make Indian seafood less competitive, leading to decline in volumes and prices.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Possible Trade Diversion and Rebalancing: <\/strong>Exporters may attempt to divert shipments to China, Japan, and Southeast Asia, but these markets have lower purchasing capacity or existing domestic suppliers.\n<ul class=\"wp-block-list\">\n<li>Rebalancing to new markets will take time, during which export losses are expected.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>India\u2019s Seafood Industry<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is the <strong>second largest fish producing country<\/strong> with around <strong>8% share in global fish production.\u00a0<\/strong><\/li>\n\n\n\n<li><strong>India mainly has eight major fish-producing states:<\/strong> Andhra Pradesh, Gujarat, Karnataka, Kerala, Maharashtra, Odisha, Tamil Nadu, and West Bengal.\u00a0<\/li>\n\n\n\n<li><strong>India\u2019s total seafood exports in 2024\u201325<\/strong> reached $7.38 billion, amounting to 1.78 million metric tonnes.\n<ul class=\"wp-block-list\">\n<li>Frozen shrimp remained the top export, accounting for <strong>66% of earnings with $4.88 billion.\u00a0<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cadeec\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"602\" height=\"415\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Indias-Seafood-Industry.png\" alt=\"India\u2019s Seafood Industry\" class=\"not-transparent wp-image-50618\" style=\"--dominant-color: #cadeec; width:431px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Indias-Seafood-Industry.png 602w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/Indias-Seafood-Industry-300x207.png 300w\" sizes=\"auto, (max-width: 602px) 100vw, 602px\" \/><\/figure>\n<\/div>\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India exported marine products to 132 countries<\/strong>, demonstrating its extensive reach in the global seafood market. <strong>Top five destinations are: <\/strong>USA, China, Japan, Vietnam and Thailand.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"cfc8c1\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"587\" height=\"386\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/India-exported-marine-products.png\" alt=\"India exported marine products\" class=\"not-transparent wp-image-50617\" style=\"--dominant-color: #cfc8c1; width:462px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/India-exported-marine-products.png 587w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/India-exported-marine-products-300x197.png 300w\" sizes=\"auto, (max-width: 587px) 100vw, 587px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives to Boost Seafood Exports:\u00a0<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Infrastructure Development: The Marine Products Export Development Authority (MPEDA) <\/strong>offers assistance to upgrade processing facilities, establish quality testing laboratories, and participate in international trade fairs.\n<ul class=\"wp-block-list\">\n<li>This helps enhance the quality and competitiveness of Indian seafood products in global markets.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Aquaculture Support:<\/strong> This support includes the transfer of advanced technologies and best practices to increase production and productivity.<\/li>\n\n\n\n<li><strong>Duty Reduction: <\/strong>The government in Budget 2024-25 has reduced import duties on essential ingredients used in seafood feed.\n<ul class=\"wp-block-list\">\n<li>Key reductions include the complete removal of duties on fish lipid oil, algal prime, crude fish oil, and pre-dust breaded powder.\u00a0<\/li>\n\n\n\n<li>Additionally, import duties on krill meal, mineral and vitamin premixes, and prawn\/shrimp and fish feed have been significantly lowered.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Export Incentives: <\/strong>The government has enhanced the Remission of Duties and Taxes on Export Products (RoDTEP) scheme.\n<ul class=\"wp-block-list\">\n<li>The refund rate for various seafood products has been increased from 2.5% to 3.1% of the export value.\u00a0<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Pradhan Mantri Matsya Sampada Yojana (PMMSY):<\/strong> This flagship scheme aims to modernize the fisheries sector, including developing cold chain infrastructure, reducing post-harvest losses, and improving overall productivity.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"bbc3c9\" data-has-transparency=\"true\" loading=\"lazy\" decoding=\"async\" width=\"595\" height=\"336\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/pmmsy.png\" alt=\"PMSSY\" class=\"has-transparency wp-image-50616\" style=\"--dominant-color: #bbc3c9; width:421px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/pmmsy.png 595w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/pmmsy-300x169.png 300w\" sizes=\"auto, (max-width: 595px) 100vw, 595px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The new U.S. tariff regime may negatively impact India\u2019s trade balance, especially in the short term.\u00a0<\/li>\n\n\n\n<li>Unless mitigated by bilateral trade dialogue, export diversification, or tariff relief measures, India\u2019s seafood sector may suffer both economic and trade competitiveness losses.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/andhra-pradesh\/trumps-25-tariff-likely-to-hit-seafood-exports-from-ap\/article69896640.ece#:~:text=With%20U.S.%20President%20Donald%20Trump,into%20effect%20on%20August%207.\" rel=\"nofollow noopener\" target=\"_blank\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<h3><strong>Context <\/strong><\/h2>\n<li class=\"ms-5\">U.S. President Donald Trump announced a 25% tariff on Indian products; the aquaculture sector in Andhra Pradesh is likely to be severely affected.\u00a0\n<\/li>\n<p><\/p>\n<h3><strong>About <\/strong><\/h3>\n<li class=\"ms-5\">Indian exporters are presently paying 10% tariffs and additional anti-dumping duty of 4.5% and countervailing duty of 5.8%.\n<\/li>\n<li class=\"ms-5\">With the US announcing the tariffs of 25%, the exporters will face at least 15% additional duty over the existing tariff structure from August 7.\n<\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/06-08-2025\/us-25-percent-tariff-andhra-pradesh-seafood-exports\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":15,"featured_media":50641,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2025\/08\/us-25-percent-tariff-andhra-pradesh-seafood-exports.png","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=50615"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50615\/revisions"}],"predecessor-version":[{"id":50626,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/50615\/revisions\/50626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/50641"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=50615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=50615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=50615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}