Rajamahendravaram: Andhra Pradesh's vital aquaculture sector is facing an unprecedented crisis following the recent imposition of increased tariffs on shrimp imports by US President Donald Trump. This move, described by local farmers as a plunge ‘from the frying pan into the fire’, has significantly jeopardised the Rs 18,000-crore aqua export industry in the state. Andhra Pradesh is the undisputed leader in India's shrimp production and exports, contributing roughly 75 per cent of the nation's total shrimp output and about 32-33 per cent of the value of India's seafood exports. Over 10 lakh families in the state are directly or indirectly reliant on this sector, with major production hubs in West Godavari, Konaseema, Kakinada, and other districts.

On July 31, the US President announced 25 per cent tariff on imports from India. The immediate consequence of the new US tariff was a sharp drop in shrimp prices. Farmers in the Godavari districts, including Konaseema and West Godavari, lament that prices have fallen by up to Rs 40 per kg. This steep decline means export prices, typically ranging from Rs 270-Rs 300 per kg, have now plummeted to Rs 220-Rs 230, resulting in a loss of Rs 40-Rs 50 per kg for farmers.

The industry, which produces 4 lakh tonnes annually with 3.5 lakh tonnes earmarked for international markets, is grappling with a severe crisis. Farmers stated that by July 31, the price of 100-count shrimp had already dropped by Rs 40 per kg.

According to a farmer, with new tariffs, exporting Rs 1 lakh worth of shrimp to the US could attract a tax outgo of Rs 26,000, potentially pushing the total burden further when factoring in other costs. This will not only hit cultivators hard but also the livelihoods of lakhs of daily wage labourers in associated sectors like packing, processing, and transportation, he added.

Aqua sector experts warn that this price collapse would put farmers at a high risk of being unable to recover investments, leading to a debt trap. A decline in exports will also force processing units to reduce operations, potentially resulting in significant job cuts across the state. However, T Jagadeesh, a leading exporter from Bhimavaram, expressed his optimism that the aqua sector in AP would overcome the crisis.

Speaking to The Hans India, Jagadeesh acknowledged the severe anxiety prevalent in the region’s aqua industry, comprising nearly 200 exporters. He stated that the new US tariffs, combined with existing duties, would impose an additional burden of nearly 35 per cent on exporters. He, however, pointed out that the aqua sector is no stranger to crises and has consistently overcome challenges with determination. He further explained that state’s aquaculture industry was not solely dependent on the American market, noting the availability of several alternative market opportunities.

In response to this looming crisis, the state government is said to be actively considering strategies to mitigate the impact. An official confirmed that measures such as rebranding shrimp products, boosting internal marketing, and diversifying export opportunities were being explored to increase local consumption and find new markets for the beleaguered industry.