NEW DELHI: India may get an alternative seafood market to countervail the impact of unilateral tariffs imposed by the US, but it will not receive a fair price for its exports. Analysis indicates that US consumers pay significantly more for Indian seafood, more than double the average price that China and Japan pay per kilogram. Traders are urging economic ministries to finalise a deal with the US before it’s too late.
The US, previously India’s largest seafood market, valued at $7.38 billion (35% of exports), implemented a crushing 59.73% tariff on the Indian seafood sector, which eventually destroyed the seafood industry. As a succour to seafood producers and traders, PM Narendra Modi visited China and Japan after the unilateral tariff imposed by the US to get a market for its premier seafood.
However, data shows that China and Japan alone cannot replace the US in terms of value, even though they are the top importers of seafood from India by volume.
Export data from the Marine Products Export Development Authority (MPEDA) for 2023-24 reveals that India exported 3.29 lakh tonnes of seafood to the US at approximately $7.74 per kilogram, while exports to China reached 4.52 lakh tonnes at around $3.07 per kilogram. Similarly, Japan imported around 1.07 lakh tonnes at around $3.70 per kilogram.
A country that comes close to the US and offers a better price for seafood is Canada. But they import much less in quantity. It imported around 25,000 tonnes at a price of around $7.98/kg.
Seafood exporters are facing a unique dilemma regarding the quality and quantity of their products. “The U.S. is a premium market that typically imports larger, headless shrimp, while China, the second-largest market, primarily imports smaller shrimp (whole shrimp) at lower prices,” said Gulrez Alam, Secretary of the Shrimp Feed Manufacturers Association.
Over the period, India lost a major share of its prime market in the European Union.
India's contribution to the EU's seafood exports has declined from 35% to 11% over the past decade. Some EU countries, such as Belgium, pay $6.09/kg and Italy pays $5.12/kg for Indian seafood.
On average, rest of the EU pay $5.41/kg which is much higher than Japan, China and other countries. Andhra Pradesh, which contributes over 75% of India’s total seafood exports, advocates for early free trade agreement with EU to save its industry.
Reports suggest that the Andhra Pradesh government and seafood traders have written to the relevant central ministries to request relief similar to that provided during the Covid-19 lockdown.
In this process, India plans to seek global certification —an international standard that the Marine Stewardship Council (MSC) certification could enable Indian seafood to command premium prices, up to 30% higher, to offset the loss of market access in the U.S.