Andhra Pradesh has built one of India’s largest aquaculture ecosystems, with shrimp at its centre and exports linking thousands of farms to global markets. In 2025-26, the State exported 4.09 lakh tonnes of seafood worth Rs 23,765 crore ($2.72 billion), accounting for 20.75% of India’s seafood export volume and more than 32% of its export value.
But farmers face rising feed and input costs, disease and seed-quality concerns, volatile international markets, and disruptions in the US market. Can Andhra Pradesh turn its production strength into sustained farmer profitability and export competitiveness? Here, we examine the fresh challenges facing farmers amid the current global trade and economic environment.
How large is Andhra Pradesh’s aquaculture sector?
Aquaculture has become a major economic activity in Andhra Pradesh, particularly along its coastal belt. The State produces around 46.30 lakh tonnes of aquaculture annually, including 8.50 lakh tonnes of shrimp. The sector covers about 2.43 lakh hectares, or around 6.10 lakh acres, with aquaculture activity spread across hundreds of villages. Brackish-water shrimp cultivation alone is present in around 572 villages.
The State accounts for around 30% of India’s aquaculture fish production and 79% of shrimp production. Around 2.18 lakh farmers depend on aquaculture for their livelihoods. The wider value chain, including hatcheries, seed suppliers, feed companies, farm workers, transporters, processing units, cold-chain operators, traders and other associated activities, provides direct and indirect employment or livelihood opportunities to around 14.75 lakh people.
How much does the state earn from seafood exports?
In 2024-25, Andhra Pradesh exported 3,66,182 tonnes of seafood worth Rs 21,245.90 crore, or $2.53 billion. In 2025-26, exports rose to 4,09,274 tonnes, while the value increased to Rs. 23,765.11 crore, or $2.72 billion.
This was an increase of 11.76% in export quantity and 11.85% in rupee value. In dollar terms, the increase was 7.39%.
How much does Andhra Pradesh contribute to India’s seafood exports?
India exported 19,72,018 tonnes of seafood worth Rs 73,890.46 crore ($8.45 billion) in 2025-26. Andhra Pradesh contributed 4,09,274 tonnes worth Rs 23,765.11 crore ($2.72 billion).
Andhra Pradesh accounted for:
• 20.75% of India’s seafood export quantity
• 32.16% of India’s seafood export value in rupee terms
• 32.21% of India’s seafood export value in US dollars
In simple terms, more than Rs 32 out of every Rs 100 India earned from seafood exports came from Andhra Pradesh.
What are the major challenges facing the state’s aquaculture sector?
The sector faces rising production costs, disease risks, weak farm-level margins, and uncertainty in international markets.
Feed costs are among the biggest concerns. Prices of key ingredients such as fishmeal and fish oil have risen sharply, increasing shrimp feed costs and the financial burden on farmers. Because feed accounts for a major share of cultivation costs, even a moderate increase can hurt returns.
Disease outbreaks and seed quality are another major concern. Poor-quality or untraceable seed can lead to low survival rates. At the same time, viral diseases can wipe out a crop after farmers have already spent heavily on pond preparation, seed, and feed. Stronger seed certification, traceability, biosecurity and early disease detection are therefore important.
Farm-level profitability is another concern. Farmers must balance stocking density, crop duration, shrimp size, and market prices. Keeping shrimp longer to reach larger sizes means higher expenditure on feed, power, and labour, but there is no guarantee the additional cost will be recovered through better prices.
How are international markets and climate risks adding to the pressure, and how important are the US and China markets for India’s shrimp exports?
Shrimp farming is closely linked to global markets, making farmers vulnerable to changes beyond their control. The US remains an important market for Indian shrimp, while China, the European Union, Southeast Asia, the Middle East and Japan are other major destinations.
Changes in tariffs, import rules, demand, currency movements and international shrimp prices can affect the export chain and, eventually, farm-gate prices.
The US is the most important destination for India’s frozen shrimp exports. During 2025-26, frozen shrimp accounted for 42.42% of total marine export quantity and 66.52% of total export earnings. Frozen shrimp exports increased by 6.89% in quantity and 13.16% in value during the year.
The US accounted for 44.53% of India’s frozen shrimp export earnings in dollar terms, followed by the European Union at 15.79%, Southeast Asia at 13.49%, the Middle East at 9.36% and Japan at 3.68%.
China is also an important market, particularly for Black Tiger shrimp. China accounted for 35.87% of Black Tiger shrimp exports by value, followed by the Middle East at 23%, Southeast Asia at 20% and other countries at 5.90%.
Exporters can also move beyond bulk frozen shrimp towards value-added products such as peeled and deveined shrimp, cooked products, ready-to-cook seafood and other processed products. Value addition can generate more revenue from the same volume of raw material.
Farmers also face climate and water-quality risks. Temperature fluctuations, low dissolved oxygen, salinity changes, heavy rainfall and extreme weather can stress shrimp and increase disease vulnerability. Better water-quality monitoring, scientific farm management, disease surveillance and climate-resilient practices are needed to reduce crop losses.
Can increasing domestic consumption provide an alternative market for shrimp farmers? What is needed to make shrimp more affordable and readily available to Indian consumers?
Currently, consumers who want to eat shrimp often find it either not readily available in local markets or relatively expensive. As a result, shrimp remains an occasional food for many consumers rather than a regular part of their diet.
Farmers and traders can ensure a more consistent supply to local markets, while processors can introduce smaller, affordable packs and convenient ready-to-cook products. The government can promote shrimp’s nutritional value, strengthen seafood retail infrastructure and support hygienic marketing.
How did the Government respond to the tariff hike affecting seafood exports, and what specific measures were taken?
The Government of Andhra Pradesh adopted a strategy to safeguard the interests of aqua farmers, seafood exporters and allied stakeholders amid global trade disruptions and tariff-related challenges.
It has requested the Centre to pursue diplomatic engagement with major importing countries and use India’s Free Trade Agreements (FTAs).
India’s trade agreements with the UAE (CEPA), Australia (ECTA), EFTA countries (TEPA) and the recently concluded India-UK FTA, along with ongoing negotiations with the European Union, Oman, New Zealand and Peru, are expected to improve market access and the competitiveness of Indian seafood exports.
The Government has implemented measures to improve competitiveness and reduce the impact of global market fluctuations. These include:
Extending subsidised electricity to registered aquaculture farms to reduce production costs.
Promoting scientific aquaculture, biosecurity, efficient feed management and water-quality monitoring.
Holding consultations with exporters, processors, hatcheries, feed manufacturers and farmer organisations.
Developing fishing harbours, fish landing centres, cold-chain facilities, processing infrastructure and logistics.
Advocating with the Government of India for rationalisation of input costs, improved availability of feed ingredients, better market access and favourable trade policies.
What is the Government’s long-term strategy to enhance Andhra Pradesh’s position in global seafood exports?
The Government’s vision is to position Andhra Pradesh as the Global Seafood Capital of India by promoting sustainable aquaculture, value addition and internationally competitive seafood exports.
The long-term strategy includes:
Providing Rs 1,150 crore in power subsidy to 2.12 lakh aqua farmers with 71,000 power connections across the State.
Converting more than 90% of major aquaculture areas into aqua zones through a cluster approach.
Using digital technologies, including geo-tagging of 2,07,765 aqua ponds across the State in 69 mega water-source-based clusters and 2,150 sub-clusters, with geo-fencing.
Strengthening traceability systems, with more than 10,000 aqua business input and hand-holding support units across the State.
Using AI-based IoT sensors with integrated farm management.
Developing skills among fishermen, farmers, entrepreneurs and processors.
Reducing production costs through nursery systems with Biofloc technologies.
Promoting private investment and ease of doing business.
Integrating 25 lakh stakeholders in the sector.
What will determine whether Andhra Pradesh can retain its position?
Andhra Pradesh’s next phase of aquaculture growth will depend on producing shrimp more efficiently, sustainably and profitably.
The State already has a large production base, farming community and export ecosystem. The main areas needing attention are input costs, disease management, seed quality, value addition, and farmer price realisation.
With around 2.18 lakh farmers and 14.75 lakh people depending directly or indirectly on the sector, developments in aquaculture affect a large section of the State’s economy and livelihoods. The focus will therefore be on strengthening the sector and improving farmers' returns.