The Reciprocal Tariffs of US President Donald Trump are creating havoc across the Globe. It is a Bloodbath in Stock Markets across the World, and Indian Stock Markets are not behaving anything differently.
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The Reciprocal Tariffs are impacting Andhra Pradesh and particularly the Krishna, West Godavari, Nellore, and East Godavari district where Aqua Culture is more.
In 2023-24, seafood products worth Rs. 20,892 crore were exported from our country to the US. The country accounted for 34.53% of the value. The US imported a total of 3,29,192 tonnes of seafood products, of which 2,92,690 tonnes were Prawns.
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The US accounts for 40% of the total Prawn exports from the country in volume and 66.12% in value. A large percentage of this is exported from Andhra Pradesh.
In 2023-24, seafood products worth Rs. 60,524 crore were exported to various countries. It is noteworthy that Rs. 17,984 crore (30%) of this went from Visakhapatnam port alone.
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It is even more if we add Krishnapatnam and Chennai ports. That is why the increase in US tariffs is having a serious impact on our farmers.
Countries like Vietnam, Thailand, Japan, etc. buy seafood products from India. It goes without saying, the majority of that is from Andhra Pradesh. They process them and export them to the US. Facing high tariffs from the US, these countries are cancelling their orders to India.
Further, Indian exporters face non-tariff barriers in the European Union, including 50% inspection and 4-7% import duty. Countries like Vietnam, which has zero duty under a free trade agreement with the EU, are capturing the market there.
At the same time, countries like Ecuador are taking this opportunity.
Countries like Ecuador are only being taxed at 10% by the United States. This will be a disadvantage for India and a benefit for Ecuador.
Companies that purchased products from farmers in accordance with previous orders have packed them and stored them in cold storage. Due to the new rules, they will also be subject to customs duties.
With the cold storage filling up, there is confusion in the state where it is not known where to store the Prawns caught from the ponds.
This confusion, if prolonged further, can kill the Aqua industry completely. These are perishable goods, and if the situation is not addressed quickly, the losses will be massive.
There is a huge ecosystem of aqua farmers, hatcheries, feed mills, processors, and exporters who will get ruined.
At the same time, the Government of India is completely clueless about how to handle the situation.