Andhra Pradesh’s Agriculture Minister Kinjarapu Atchannaidu expressed appreciation for the US government’s decision to lower tariffs on Indian products. This move, reducing tariffs from 25% to 18% under the India-US trade agreement, is seen as a significant relief for seafood exporters in the state, particularly benefiting the aquaculture sector.
Atchannaidu highlighted that this tariff reduction will be advantageous for Andhra Pradesh, a key player in the aquaculture industry. It is expected to enhance income stability and create more job opportunities for farmers and fishermen. The minister also anticipated a boost in exports, a sector that had faced a decline due to high tariffs.
The reduction in tariffs is projected to lead to a 10 to 15% increase in seafood exports, specifically frozen shrimp, and improve profit margins in the processing industry. With the competitiveness of Indian seafood products in the US market set to rise, there is optimism for a resurgence in export orders and the release of stored goods.
It is anticipated that the seafood export sector will witness a growth of 10 to 15% in the near future, potentially returning to pre-tariff levels by the second half of 2025-26. This development is also expected to enhance profit margins in seafood processing, with margins likely to rise from 5-5.5% to 7-8% post-tariff reduction.
Atchannaidu emphasized that the duty concessions on seafood processing inputs in the Union Budget 2026 will further support this sector. He also noted the steady progress of Indian seafood exports to non-US markets like the European Union, China, Vietnam, Russia, and the United Kingdom, indicating market diversification.
