In a move that has raised concerns in India’s seafood sector, Louisiana Senator Bill Cassidy has proposed the India Shrimp Tariff Act, aiming to impose duties on shrimp imports from India. The Southern Shrimp Alliance (SSA), representing shrimp industry stakeholders in eight warm-water shrimp-producing U.S. states, has expressed support for the proposal.
Frozen shrimp, constituting nearly 70 percent of India’s seafood exports, achieved a record $8.09 billion in FY23, with the United States being the largest market for Indian seafood, predominantly shrimp.
Senator Cassidy alleges that highly subsidized Indian aquaculture shrimp accounts for 40 percent of all shrimp imports into the U.S., impacting the local shrimp industry, which now represents less than 10 percent of the shrimp consumed in the country. The proposed India Shrimp Tariff Act suggests a phased imposition of duties, starting at 10 percent in 2024, escalating to 20 percent in 2025, and reaching 40 percent from 2026 onwards, mirroring India’s duty rate on shrimp imports.
SSA Executive Director John Williams has welcomed the proposal, seeking support from other senators, citing what he perceives as unaddressed unfair trade practices by Indian shrimp exporters.
President of the All India Shrimp Hatcheries Association (AISHA), Ravi Kumar Yellanki, has urged the Indian government to respond proactively to counter potential challenges. However, the Seafood Exporters Association of India President Jagdish V Fofandi remains cautious, adopting a “wait and watch” policy.
The seafood industry has argued against the notion of heavy subsidies in aquaculture, with D Ramraj, past president of AISHA, asserting that subsidies available to Indian shrimp farmers are comparable to other aquaculture shrimp-producing nations.
Senator Cassidy’s claims also extend to the environmental and social sustainability of Indian shrimp aquaculture, citing issues such as deforestation, the use of banned antibiotics, and child labor. The proposed India Shrimp Tariff Act includes provisions to eliminate the exemption of cooked shrimp from the requirements of the U.S. Department of Agriculture’s country-of-origin labeling (COOL) requirements.
As the proposal unfolds, concerns are voiced over its potential impact on the consumption of value-added Indian shrimps in the U.S. Moreover, this development comes at a challenging time for India’s seafood exports, with a downturn in FY23 due to poor demand and low prices in major importing markets such as the U.S., China, and Europe. Stakeholders are closely monitoring the situation as the industry faces potential disruptions and explores strategies to navigate the changing trade landscape.
