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The US reciprocal tariff on seafoodimports from India is likely to rattle the country’s marine fisheries sector in the short-run, but it opens up opportunities for long-term strategic re-adjustments. The 26 per cent tariff will lead to a substantial increase in the cost of Indian seafood for US importers, leaving them less competitive in the US market compared to both domestically sourced seafood and imports from countries that face lower or no tariffs.
However, a long-term strategy will enable India to intensify their efforts in exploring and penetrating alternative export markets beyond the United States, said A. Grinson George, Director of ICAR-Central Marine Fisheries Research Institute (CMFRI).
“Exploring opportunities to increase the export of such products, as well as value-added seafood items, could help diversify the export portfolio and reduce the overall reliance on the US shrimp market,” he said adding that a fundamental restructuring of India’s seafood export industry would lead to a decreased dependence on the US market
Research needed
He said markets such as Europe, China and the Middle East offer significant opportunities for diversification. However, this requires dedicated market research to understand local consumer preferences, regulatory requirements and competitive landscapes.
The present crisis may turn out to be an opportunity if the Indian seafood processing sector rises to the occasion by overhauling its value-addition strategies and by finding new markets. Currently, less than 10 per cent of all seafood products exported from India are in value-added forms, he said.
A strategic reallocation of investments is required towards processing facilities that cater to the specific demands and regulations of alternative markets, emphasising on value addition that have stronger demand in non-US markets.
The overall value of seafood exports from India to the US in FY24 stood at $2.55 billion out of India’s total seafood exports of $7.38 billion.
Domestic market potential
Besides, there is considerable potential to increase domestic consumption of fish and fish products, especially in non-coastal states, where demand is experiencing a gradual upward trend driven by growing incomes and awareness of health benefits of blue foods. The fast-growing domestic industry for fresh fish and value-added forms can also absorb the production if such potential is tapped effectively through proactive policy measures such as enhancing domestic market infrastructure, logistic support and overall improvements in the value chain efficiency, Grinson George said.
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Published on April 8, 2025
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