Indian Seafood Exports Navigate Tariff Tides

Indian seafood exporters have demonstrated resilience amidst fluctuating US trade policies, achieving a record $8.46 billion in exports for FY26 despite tariff threats. Initially concerned about potential duties of up to 100%, many found relief when specific tariffs were waived. However, the unpredictability of US trade policy created significant unease.

To mitigate losses, Indian exporters proactively diversified their markets. Shipments to the European Union, China, Japan, and Vietnam saw increased momentum. This strategy proved effective, contributing to a 13% year-on-year rise in seafood exports to $4.5 billion in April-September FY27.

The US remains India's largest seafood export market, accounting for over a quarter of trade. Frozen shrimp alone is a major earner. Despite efforts to diversify, the US market offers better price realizations, prompting continued focus. In the first five months of the current fiscal, US shipments rose 1% to $1.25 billion.

However, competition is intensifying, particularly from Ecuador, which has surpassed India as the top shrimp supplier to the US. Ecuador's shrimp exports to the US increased by 32% year-on-year, while India's shipments saw a decline in volume. Indian exporters aim to leverage their advantage in value-added products to compete.

Exporters are now prioritizing stability and sustaining current volumes over aggressive growth. The focus is on maintaining business across various markets while strengthening their position in higher-value seafood products, differentiating through offerings like battered and ready-to-eat options.