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Tariffs

Andhra Pradesh Seeks Relief for Aquaculture Sector Hit by US Tariffs

Strategic Insights

— 2 min read

Andhra Pradesh, a state in southern India, is one of the largest exporters of seafood in the country, with the majority of its shrimp exports going to the US. However, with the recent increase in US tariffs on Indian imports, the state's aquaculture sector is facing significant losses. Chief Minister N Chandrababu Naidu has written to the Centre seeking relief measures to mitigate the impact of the tariffs on the sector. The state has estimated that India's shrimp exports have taken a hit of about Rs 25,000 crore, with about 50% of export orders cancelled due to the tariffs.

Key Takeaways:

  • The US tariffs on Indian imports have resulted in a loss of around Rs 25,000 crore for India's shrimp exports, with about 50% of export orders cancelled.
  • The tariff burden of Rs 600 crore has impacted 2,000 containers exported.
  • Andhra Pradesh chief minister N Chandrababu Naidu has sought a moratorium on loan and interest repayments for aqua sector companies.
  • The state has also requested financial support for exporters, a Rs 100-crore corpus fund, and cold storage facilities to help cushion the blow from the US tariffs.
  • Naidu has stressed on diversifying the export market beyond the US and executing free trade agreements (FTAs) with the EU, South Korea, Saudi Arabia, and Russia to boost exports.
  • The state is also planning to run dedicated trains for transporting aqua products from southern India to other parts of the country.
  • To increase domestic demand for seafood, Naidu has suggested conducting awareness campaigns to promote seafood consumption, pointing out that aqua products are rich in protein.
  • Seafood consumption in India stands at 12-13 kg every year compared to the global average of 20-30 kg.
  • Andhra Pradesh accounts for 80% of the country's shrimp exports and 34% of marine exports, with shipments valued at about Rs 21,246 crore annually.
  • The state has already taken steps to promote domestic consumption of seafood, such as reducing the maximum retail price of aqua feed by Rs 9 per kg.

Statistics:

  • Rs 25,000 crore: estimated loss for India's shrimp exports due to US tariffs.
  • 50%: percentage of export orders cancelled due to US tariffs.
  • Rs 600 crore: tariff burden impacting 2,000 containers exported.
  • 2,000: number of containers impacted by tariff burden.
  • 80%: percentage of the country's shrimp exports from Andhra Pradesh.
  • Rs 21,246 crore: value of marine exports from Andhra Pradesh annually.
  • 12-13 kg: seafood consumption in India per year.
  • 20-30 kg: global average seafood consumption per year.

Sources:

  • Times of India (for Reprint Rights: timescontent.com)
  • Letters to finance minister Nirmala Sitharaman, commerce and industry minister Piyush Goyal, and fisheries minister Rajeev Ranjan Singh from Andhra Pradesh chief minister N Chandrababu Naidu.

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