Hyderabad: For years, Andhra Pradesh has been India’s largest aqua food exporter to the United States. However, the Trump administration’s tariff demands, including a nearly 60 percent tariff on shrimps, have hit the industry. The state is now exploring avenues to reduce the impact on lakhs of aqua farmers, reeling under losses after over 50 percent of shrimp exports to the US were reportedly cancelled.
To protect aqua farmers from export shocks, the state government is betting big on improving domestic consumption. Chief Minister Chandrababu Naidu is encouraging the inclusion of aqua food such as fish and shrimps into people’s diets. At the same time, his administration is instituting the A.P. Prawn Producers Company, an initiative to aid shrimp producers by creating producers’ organisations and through domestic marketing efforts.
At least three lakh AP farmers are involved in aqua culture, whereas an estimated 50 lakh are either directly or indirectly dependent on the sector, according to CM Naidu.
“We need to increase domestic consumption. Shrimps are a protein-rich food; aqua products are better than chicken in protein content. I am—at least in one meal a day—taking either fish or prawns, and I urge you all to do the same,” CM Naidu told legislators in the state assembly last week. “Like we promoted egg consumption earlier, we need to encourage prawns…consider supplying them as part of meals in schools and colleges.”
The US is the largest importer of Indian seafood in value terms, with imports worth $2,549 million in 2023-24, according to the Marine Products Export Development Authority (MPEDA), which operates under the Ministry of Commerce and Industry. Andhra Pradesh supplies nearly 33 percent of the seafood exported from India.
Shrimps account for a majority of seafood exports to the US. AP, with its long coastlines and conducive climate, is a leading producer, with 70 percent of India’s shrimp farming output coming from the state. Nearly 60 percent of Andhra Pradesh’s shrimp exports in 2024-25—3.70 lakh metric tonnes (LMT) of shrimps—were to the US.
In his efforts to shield aqua farmers, the CM has requested the Modi government to support the sector. The Naidu government is also urging the Centre to explore alternative foreign markets and introduce dedicated trains to transport aqua products to northern India to improve domestic consumption.
The A.P. Prawn Producers Company (APPPC) will bring together roughly three lakh aqua farmers across the state, for capacity building and financial inclusion, product aggregation, value addition, quality assurance, cost efficiency and market linkages.
“APPPC will pool member farmers’ produce to achieve economies of scale in processing, packaging, and marketing. It will enforce strict quality control across the production cycle to deliver premium prawns and fish. Operational costs will be reduced by collective procurement of inputs and services,” Anam Venkata Ramana Reddy, the vice chairman of the Andhra Pradesh State Aquaculture Development Authority (APSADA), told ThePrint.
It will provide farmers with quality feed and seed, as well as modern farming techniques to improve yields. The organisation also aims to build strong relationships with processors, exporters and retailers to ensure stable demand and fair pricing. It will also provide regular training on modern farming, sustainable practices, and business management. Besides, it will enable access to credit and financial services via partnerships with financial institutions.
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Betting big on domestic consumption
A note by the commissioner of fisheries—reviewed by ThePrint—has listed several strategies to increase the appeal and availability of shrimps in the Indian market. They include expanding retail infrastructure and cold chain logistics, market development in partnership with e-commerce and digital sales platforms, supermarkets, restaurants, seafood shows and festivals, as well as celebrity endorsements. The note has also suggested the inclusion of shrimps in Indian Railways and Indian Army menus, apart from the menus of educational institutions and Anganwadis.
Through these efforts, the Andhra Pradesh government aims to offset losses in the US market by boosting domestic consumption to 2.50 LMT in the next two to four years, thereby reducing its dependence on exports.
Fisheries department officials, however, have cautioned that even increased domestic fish and shrimp consumption will not fully make up for lost export earnings immediately.
“Improved domestic consumption acts as a shock absorber for farmers during tariff hikes and trade disruptions—like we are experiencing now. It creates a stable alternative demand base,” said a senior fisheries department official.
The fisheries note has cited the example of Vietnam and China, which faced trade restrictions in the past. “They built a strong domestic seafood market through supermarket chains, branding, and street-level consumption campaigns,” the note observed.
It has added that a balanced approach, combining exports and a strong domestic market, will make the state’s seafood sector more resilient, sustainable, and farmer-friendly.
Within Andhra Pradesh, the government wants to increase the per capita aqua food consumption from 10.9 kg a year to 15-17 kg in the next two to four years.
CM Naidu seeks Centre support
In separate letters to Union Finance Minister Nirmala Sitharaman, Commerce & Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh last month, CM Naidu pointed out that aqua farmers and families in Andhra Pradesh are in “severe distress due to US-imposed tariffs”.
Andhra Pradesh accounts for 80 percent of India’s shrimp exports and 34 percent of marine exports, with exports valued at roughly Rs 21,246 crore annually, CM Naidu noted in his letter. He added that US tariffs have had the greatest impact on shrimp exports, “with about 50 percent of export orders cancelled”. “Nearly Rs 600 crore in tariff burden has fallen on about 2,000 containers being exported,” he added.
The chief minister noted that his government has initiated relief measures, like reducing aqua feed MRPs by Rs nine per kg.
CM Naidu emphasised in his letters that, along with state government support, central assistance is essential to sustain aqua farmers. He requested bank support for exporters and aqua companies, including a 240-day moratorium on loan and interest repayments, interest subsidies and a temporary waiver of the five percent GST on frozen shrimp.
In addition, he urged the Centre to focus on diversifying export markets beyond the US, suggesting Free Trade Agreements (FTAs) with the European Union, South Korea, Saudi Arabia, and Russia to boost exports. The CM also sought interim financial support for exporters and clarity on tariff/tax relief schemes, while noting that exporters were ready to supply seafood to the EU.
Stressing the need to expand the domestic aqua market, CM Naidu requested a Rs 100 crore fund, the establishment of cold storages, and hygienic fish and seafood markets. To improve transportation, he requested the Centre to run dedicated trains for shipping aqua products from south India to various parts of the country.
He also urged that fishermen be provided one-time top-up loans of Rs one lakh under Kisan Credit Cards, and that processing, packaging and cold-chain facilities be strengthened through the Fisheries and Aquaculture Infrastructure Development Fund (FIDF) to enhance competitiveness in new markets. The CM wants regional offices of ICAR-National Bureau of Fish Genetic Resources and ICAR-Central Institute of Brackishwater Aquaculture to be established in Andhra Pradesh.
(Edited by Sugita Katyal)
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