Prawn farmers have urged the Government to remove import duties on essential aquaculture inputs including brood-stock and hatchery feeds in the face of reciprocal tariff by the US on shrimp exports.
Prawn Farmers Federation of India said nearly 100 per cent of the brood-stock used in shrimp farming has been imported from the US along with significant quantities of hatchery feeds, pre-mixes and artemia. Eliminating these duties would demonstrate the country’s commitment to fair trade practices and strengthen the foundation for reciprocal actions from the US.
The Federation President IPR Mohan Raju pointed out that the 26 per cent US reciprocal tariff, the existing anti-dumping duty of 3.88 per cent and countervailing duty of 5.77 per cent were posing an existential threat to the shrimp industry. Farmers across the country are operating at below-par realisations with little to no margins. Over 90 per cent are small and marginal farmers operating with less than two hectares of land holdings.
Shrimp farmers are already selling their produce at unsustainably low prices and with the current duties, they are struggling to survive in an industry that is financially strained. The sector spans nine maritime states and predominantly operates in under-developed regions by offering livelihoods to unskilled and semi-skilled workers, he said adding that any decline in prices at the farmer level will worsen the rural livelihood crisis and demotivate production.
“India’s seafood exports recorded a high volume in FY24, reaching 1,781,602 tonnes valued at $7.38 billion. Of this, frozen shrimp remained the leading export item, generating $4.88 billion. The US emerged as the top market importing 297,571 tonnes,” he said.
The Federation urged the Government to initiate discussions with US counterparts to seek an exemption for the seafood sector from these punitive tariffs.
Indian import duty
Currently, India imposes 35 per cent duty on seafood imports even though inbound volumes from the US are negligible. The Federation proposed for the removal of this duty for seafood and the five per cent duty on larval and shrimp feed brood-stock, artemia and other aquaculture inputs that are critical for the industry.
The Federation urged the Government to leverage the bilateral trade deficit to expand shrimp exports to China, which is importing large volumes from Ecuador.
Given the tremendous untapped potential in the domestic market, it also sought to develop a focussed campaign to explore the develop the domestic market through a dedicated supply chain network from the current fragmented system where quality, consistency in supply and pricing remain major challenges.