India’s Position as World’s Second-Largest Shrimp Producer Faces New Threats

India currently ranks as the world’s second-largest shrimp producer, only behind Ecuador. However, the industry faces significant challenges due to recent tariffs imposed by the United States.

Impact of US Tariffs on Indian Shrimp Farmers

Shrimp farmers like Buddhadeb Pradhan from Nandigram, West Bengal, are struggling with declining prices. Pradhan has invested approximately 300,000 rupees (around $3,380) in his shrimp farming. He recently took the risk of planting a second crop shortly after harvesting the first, despite the threat of disease.

Post-tariff, the farm price for shrimp has plummeted from 300 rupees ($3.38) per kilogram to 230 rupees ($2.59). This decrease puts immense pressure on farmers, as their production costs are around 275 rupees ($3.10) per kilogram. As a result, many are experiencing mounting losses.

Production Statistics

• India produced 1.1 million tonnes of shrimp in the financial year ending March 2024.
• Exports accounted for $5 billion of frozen shrimp, with the US comprising about 48% of the market.
• Indian shrimp farming employs around 10 million people across various sectors.

Concerns among Farmers

Nardu Das, another local shrimp farmer, expressed concern about the unsustainable nature of their situation. With the current economic pressures, farmers may be compelled to consume low-quality shrimp to survive. High operational costs including land lease, power, and feed create severe financial burdens.

Farmers are particularly troubled by the US tariffs, which currently stand at 58.26%. This includes countervailing duties of 5.77% and anti-dumping tariffs of 2.49%. These high tariffs threaten their access to the crucial US market, which is preferred due to its better profit margins and market stability.

The Role of Hatcheries and Local Brood Stock

India has about 550 private shrimp hatcheries that rely heavily on farmer demand. Many hatcheries have shut down due to reduced orders, leading to the wastage of billions of shrimp seeds, as they have a short shelf life of just a few days.

IPR Mohan Raju from the Prawn Farmers Federation of India has called for a switch to local brood stock for breeding shrimp seed. This could enhance the quality and adaptability of shrimp to local farming conditions.

Competition with Ecuador

India faces increasing competition from Ecuador, which is rapidly growing its share in the US market. Ecuador offers high-quality vannamei shrimp at lower prices due to its geographical proximity and lower tariffs of 15%. In 2025, Ecuador exported over 1 million metric tonnes of shrimp to the US, a 14% increase from the previous year.

Experts believe that Indian exporters may need to focus on diversifying their markets. The untapped domestic market in India presents a significant opportunity that is often overlooked.