US tariff hike on Indian seafood exports hits Odisha’s shrimp industry, endangering 1.5M livelihoods and crippling state’s Rs 4,700 crore trade
OdishaPlus Bureau
The recent tariff implemented by US President Donald Trump on Indian exports is expected to impact the livelihoods of at least 1.5 million individuals involved in the fishing industry, as stated by the seafood exporters’ association on Thursday.
Tara Ranjan Patnaik, a representative of the Seafood Exporters’ Association of India, asserted that seafood exports to the US would cease since Indian traders cannot compete in the American market, where traders from Vietnam and other Asian nations benefit from lower tax rates.
Patnaik, who also serves as the chairman of Falcon Marine Exports, a prominent frozen shrimp exporter based in Odisha, informed PTI: “We have already scaled back production and collection of seafood intended for export to the US. The repercussions are already being felt in coastal states like Odisha. This will jeopardize the livelihoods of at least 1.5 million individuals working in the fishing sector.”
The additional 25 percent tariff imposed by Trump on India’s purchases of Russian oil took effect on Wednesday, raising the total tariff imposed on New Delhi to 50 percent.
He emphasized, “Exporters from Odisha can never compete with those from Ecuador, who enjoy the lowest tariff rate of 10 percent.”In response to a query, Patnaik mentioned that although the association has reached out to both central and state governments, no decisions have been made thus far to assist traders in this predicament.
Odisha’s seafood exports amounted to Rs 4,700 crore in 2024-25, with the US market representing one-third of this total, he noted. Patnaik also indicated that his company previously dispatched approximately 120 to 130 shipments of seafood for export each month. “In August, this number dwindled to 25 shipments,” he lamented, voicing his concern over the downturn in the seafood trade and its impact on individuals involved in fishing, particularly in marine and commercial shrimp farming.
In response to inquiries regarding alternative markets globally, Patnaik stated, “The seafood processing industry is quite expensive. Americans possess a greater purchasing power compared to other nations that consume shrimp.” Another representative from the Seafood Exporters’ Association of India remarked that the tariff increase implemented by Trump has significantly impacted Indian exports, an occurrence that has not been seen in recent history.
Upon being contacted, a senior official from the Odisha government commented, “The decision concerning this issue will be made at the central level. The state does not have any involvement in this matter.”