India may find alternative markets for its seafood exports in the wake of steep U.S. tariffs, but exporters warn that the country will struggle to secure fair prices. Analysis shows that American consumers pay more than double what China and Japan pay per kilogram of Indian seafood, leaving producers worried about revenue losses despite higher export volumes.
The United States, previously India’s largest seafood destination, accounting for 35% of total exports valued at $7.38 billion, imposed a 59.73% tariff on Indian seafood, a move that severely impacted the sector. In response, Prime Minister Narendra Modi visited China and Japan to explore alternative markets for India’s premium seafood products.
However, trade data suggests that China and Japan cannot fully replace the U.S. in terms of value, even though they import more by volume.
According to the Marine Products Export Development Authority (MPEDA), during FY 2023-24, India exported:
3.29 lakh tonnes of seafood to the U.S. at $7.74 per kg,
4.52 lakh tonnes to China at $3.07 per kg, and
1.07 lakh tonnes to Japan at $3.70 per kg.
By comparison, Canada offers relatively better prices, around $7.98 per kg, but imports a much smaller quantity of roughly 25,000 tonnes.
Exporters highlight a key challenge in shifting markets: product preferences differ sharply. “The U.S. is a premium market that typically imports larger, headless shrimp, while China, the second-largest market, primarily imports smaller, whole shrimp at lower prices,” explained Gulrez Alam, Secretary of the Shrimp Feed Manufacturers Association.
India has also lost a significant share of its premium seafood market in the European Union, compounding industry challenges.
Andhra Pradesh Pushes for Early FTA with EU
Andhra Pradesh, which contributes over 75% of India’s total seafood exports, has urged the central government to expedite a Free Trade Agreement (FTA) with the European Union to revive the sector. State officials and industry representatives have reportedly written to relevant ministries, seeking relief measures similar to those provided during the Covid-19 pandemic.
Source : Logisticsinsider
