Indian Shrimp Prices Plunge, Exports Stalled, 2,000 Containers Face Detention!
A new round of U.S. tariff adjustments has hit India, pushing its shrimp export industry to the brink of crisis. Shrimp prices in Pune's Ganesh Peth market have plummeted nearly 20%, about 2,000 containers of frozen shrimp face detention risk at ports, and major U.S. retailers including Walmart, Kroger, and Costco are demanding renegotiation or even refusing shipments. Ecuador is emerging as an alternative supplier, further intensifying global competition.
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Indian Shrimp Prices Plunge, Exports Stalled, 2,000 Containers Face Detention!
The "ripple effect" of the latest round of U.S. tariff adjustments has reached India, pushing its shrimp export industry to the brink of crisis.
Over the past week, a rare price collapse occurred at the Ganesh Peth market in Pune, a city in western India. Shrimp products previously priced at up to 450 rupees per kilogram (about $5.4) have now fallen to around 350 rupees, a drop of nearly 20%. The surge in local market supply is the direct cause, but the driving force behind it is the high tariffs the U.S. has imposed on Indian shrimp.
Originally, India's shrimp exports to the U.S. bore a tax burden of only about 8%, but with the gradual implementation of the "reciprocal tariff" policy, this figure has soared to 27%, and is expected to rise further to 26% in July. Against the backdrop of up to $1 billion in exports to the U.S., this move has undoubtedly dealt a severe blow to the confidence and profit margins of Indian seafood exporters.
Pawan Kumar, chairman of the Indian Seafood Exporters Association, said bluntly: "A 10% tariff has already made it impossible for us to continue. Considering our profit margins are usually only 3% to 4%, this is almost a cliff-edge collapse." Currently, exporters are collectively demanding that the government intervene in U.S.-India negotiations to seek tariff exemptions.
Exports Stranded, 2,000 Reefer Containers With No Takers
According to Reuters, about 2,000 containers full of frozen shrimp currently face the risk of being stranded at ports. Major U.S. retailers such as Walmart, Kroger, and Costco are demanding renegotiation, and some are even refusing to accept shipped products. An Indian exporter admitted: "If the 26% tariff is really implemented, the Indian shrimp industry is basically 'finished.'"
The situation at processing plants is also not optimistic. In Andhra Pradesh in southern India, a 63-year-old shrimp farmer named Raju said helplessly: "No one wants our products. We don't know how much longer we can hold on."
Ecuador "Seizing the Opportunity"? New Competition Intensifies Global Reshuffle
Although the U.S. government announced a 90-day suspension of reciprocal tariffs for most countries and a uniform adjustment to 10%, India has not benefited from this. In contrast, Ecuador, a South American country closer to the U.S., is gradually becoming an alternative option due to its applicable preferential tariff rate.
Data shows that in 2023, Ecuador's shrimp exports reached as high as $1.55 billion, with the U.S. being its second-largest export market. Local exporters believe that although U.S. demand for Ecuadorian products is continuing to grow, the country's current production capacity cannot yet fully replace India's supply position.
But this also means that India may shift its export direction to markets where Ecuador has already established a deep presence, such as China and the EU, leading to further intensification of global market competition.
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