The uncertainty surrounding US tariffs has created significant challenges for Vannamei shrimp farming, particularly in India.

Impact on Vannamei Farming
Price Fluctuations: Shrimp prices have dropped by 10-15% due to fears of additional US levies.

Tariff Increase: The US has imposed a 26% tariff, with potential additional duties that could raise costs for Indian exporters by 7% more.

Market Disruptions: Long-term contracts with US buyers are under strain, potentially leading to $1 billion in losses for Indian shrimp traders.

Farmer Struggles: Shrimp farmers in Andhra Pradesh, a major production hub, are facing financial uncertainty, with farm-gate prices dropping by ₹40-70 per kg2.

Broader Market Effects
Export Decline: India exported 716,004 tonnes of frozen shrimp in 2023-24, with 297,571 tonnes going to the US.

Competitive Disadvantage: Ecuador, a key competitor, faces only a 10% tariff, making Indian shrimp less attractive in the US market.

Political & Economic Concerns: The shrimp industry is vital to Andhra Pradesh’s economy, employing over 2 million people.