Chennai, Aug 28 The seafood export sector in Tamil Nadu is reeling under pressure after the US imposed steep tariffs on Indian marine imports from August 27, forcing several companies to cut production by almost half.
Of the 25 seafood exporting firms operating in the state, 15 are concentrated in Thoothukudi, a long-standing hub for shipments of frozen shrimp, squid, octopus, fish and crabs to global destinations, including the US, Japan and Europe.
These firms source their catch from 13 coastal districts, process it locally, and export through the VOC Port.
The new tariff regime has hit the industry, with duties comprising a 50 per cent basic levy, 2.65 per cent anti-dumping duty and 5.77 per cent countervailing duty.
Exporters said the recurring revisions to reciprocal tariffs have created uncertainty and confusion, making it difficult to plan shipments.
Nearly 60 per cent of Vannamei shrimp from Tamil Nadu is destined for the US, and with the new levies in place, exporters have been forced to scale down operations.
Consignments, which already take 45 days to reach American shores, are now subject to delays and financial losses.
Exporters who usually ship around 50 containers every month, with 20 containers bound for the US, have drastically reduced the number as they adjust to the challenging market.
According to the Marine Products Export Development Authority (MPEDA), India exported 17.81 lakh tonnes of seafood valued at Rs 60,523 crore ($7.38 billion) in 2023-24. Frozen shrimp made up 40 per cent of the volume and nearly two-thirds of the revenue.
The US remained the single largest buyer, importing 3.29 lakh tonnes worth $2.55 billion. Tamil Nadu’s contribution stood at 89,001 tonnes, nearly 5 per cent of the national share, dominated by cultured shrimp.
The crisis has been compounded by rising freight charges.
With Houthi rebel attacks in the Red Sea forcing ships to reroute via the Cape of Good Hope, exporters are covering an additional 9,000 nautical miles, further inflating costs. Industry bodies fear India could lose its competitive edge, as countries like Ecuador and Indonesia face tariffs of only 15 to 19 per cent, making them more attractive to buyers.
Leaders from the Seafood Exporters Association of India in Tamil Nadu have warned that this situation endangers thousands of jobs in a labour-intensive sector and urged urgent intervention from the Centre to safeguard livelihoods and keep Indian seafood competitive in international markets.
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