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Chief Minister Chandrababu Naidu writes to Union Minister for Commerce & Industry Piyush Goyal*
He urges support for the aqua sector suffering losses due to U.S. tariffs.
CM requests Union Minister to take efforts to exempt aqua products from these tariffs and support farmers.
States that the fisheries sector plays a key role in the state's GDP and seeks support for aqua farmers during this crisis.
Key points mentioned by CM Chandrababu Naidu in the letter:
* The U.S. government has imposed a 27% import duty on marine food exports from India.
* In the financial year 2023-24, marine food products worth $2.55 billion were exported from India to the U.S. Of these, shrimp accounted for 92% of the exports.
* Due to the 27% import duty imposed by the U.S. on Indian shrimp exports, aqua farmers will incur losses.
* Exporters like Ecuador are facing only a 10% duty from the U.S., which indirectly harms India while benefiting such countries.
* In addition, Indian exporters are already bearing a 5.77% Countervailing Duty (CVD).
* Combining all duties, there is a nearly 20% duty difference between India and Ecuador.
* The new U.S. tariff came into effect on April 5, 2025.
* Due to this, all shipments headed to the U.S. are burdened with the increased duties.
* Products already harvested based on previous orders have been packed and stored in cold storages and ports. Due to the new regulations, these are now subject to increased duties.
* In the European Union, Indian exporters face non-tariff barriers including 50% inspection rates and 4-7% import duties.
* However, countries like Vietnam benefit from a Free Trade Agreement (FTA) with the EU, enjoying zero-duty access. As a result, such countries are effectively capturing the European market.
* Countries like Vietnam, Thailand, and Japan procure seafood from India, process it, and re-export to the U.S.
* But due to the new high tariffs on final products, even those countries are canceling their orders from India.
* In Andhra Pradesh, cold storages are full, and farmers are in a dilemma about where to store their harvested aqua produce.
* Meanwhile, more crops are ready for harvest, but exporters have halted procurement from farmers due to the 27% duty.
* These developments are pushing the state's aqua sector into a crisis.
* Aqua farmers, hatcheries, feed mills, processors, and exporters — all stakeholders are being affected.
* Hence, I request that the Government of India hold necessary discussions with the U.S. government to include shrimp in the exemption list from duties.
* Your timely intervention and resolution of this issue can safeguard the livelihood of lakhs of people who depend on the aqua sector.
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