KAKINADA: A conflict unfolding thousands of kilometres away in West Asia has dealt a heavy blow to the livelihoods of thousands of workers in Andhra Pradesh’s aqua export industry. The recent war involving the United States and Iran has disrupted global shipping routes, sharply reducing seafood exports and triggering large-scale layoffs in Kakinada district, one of the State’s major prawn processing hubs.
According to industry estimates, around 5,400 workers have lost their jobs in five seafood processing companies operating in the Kakinada Special Economic Zone (SEZ). The companies together employed more than 14,000 workers, most of whom depended entirely on the sector for their livelihood.
The worst hit are women workers from villages in U. Kothapalli and Thondangi mandals. Every day, thousands travelled to the processing units where they cleaned, peeled, graded and packed prawns for export to international markets. The jobs offered a stable source of income for many families, especially those with limited agricultural land or seasonal employment opportunities.
The five companies - Nekkanti Aqua, Devi Sea Foods, Sandhya Aqua, Coastal Aqua and Adhivishnu Aqua - played a key role in transforming the local economy after the establishment of the Kakinada SEZ. Over the years, the units created large-scale employment and trained workers in specialised processing techniques that require speed, precision and strict hygiene standards.
The seafood export business, however, depends heavily on uninterrupted global logistics. Prawns are highly perishable and must either reach overseas markets within a short period or remain in carefully maintained subzero storage until shipment. The conflict in West Asia disrupted maritime trade, with shipping movement through the Strait of Hormuz slowing considerably. Delays in the movement of containers and uncertainty over export schedules forced companies to cut production, leaving them with little option but to reduce their workforce.
The layoffs have created financial uncertainty for thousands of households. Many families depended on a single income earned from these processing units, and the sudden loss of employment has made it difficult to meet daily expenses, repay loans and support children’s education.
Kakinada District Fisheries Officer V Krishna Rao said export activity had suffered during the conflict, leading to reduced employment. With shipping operations gradually returning to normal, export orders are expected to improve and companies are likely to restore jobs in phases.
For now, however, the crisis serves as a reminder of how global geopolitical tensions can directly affect the lives of ordinary workers in coastal Andhra Pradesh, whose livelihoods depend on international trade.