VIJAYAWADA: Aquaculture in Andhra Pradesh is poised for a potential revival following the reduction of the United States reciprocal tariff on shrimp exports, bringing long-awaited relief to lakhs of aqua farmers, who were pushed into deep uncertainty over the past year.
About 8 lakh people, mainly farmers, workers and traders, are dependent directly and indirectly on aquaculture in the State.
The steep tariff hike from 7% to nearly 60% under the Trump administration’s reciprocal trade policy has crippled exports, forcing farmers to remain in a dilemma over whether to continue cultivation or not. It should be noted that the US continues to be the strongest market for India’s aquaculture exports, with Andhra Pradesh accounting for nearly 80-90% of shipments.
According to industry data, India produces about 12-14 lakh metric tonnes of aquaculture products annually, and of which shrimp accounts for nearly 8-10 lakh metric tonnes. Andhra Pradesh alone contributes around 5-6 lakh metric tonnes of shrimp. After processing such as deheading, peeling and deveining, the final exportable quantity reduces by nearly 30%. Following the India-US trade deal, the reciprocal tariff component has been reduced to 18%, bringing the overall duty burden down to 28%.
Before April 2025, shrimp exports to the US attracted a total duty of around 10%, comprising 3.76% Anti-Dumping Duty (ADD) and 5.77% Countervailing Duty (CVD). However, the Trump administration imposed a 25% reciprocal tariff, which was later increased by another 25% in August 2025, taking the total to nearly 60%, leading to a sharp decline in shrimp shipments.
“The tariff cut will be a major boost for the aquaculture industry and farmers across Andhra Pradesh. After the imposition of heavy tariff, the sector faced severe crisis. Since most of our exports are destined for the US, no other country can match that market. Other destinations, such as China and European countries, demand lower prices, which are not feasible for sustainable business. This decision will help the industry rejuvenate,” said Dileep, secretary of Andhra Pradesh Sea Food Exporters Association.
“During the peak crisis, both Chief Minister N Chandrababu Naidu and Prime Minister Narendra Modi extended strong support to the aquaculture sector, which was critical in keeping farmers and exporters afloat,” he added. Speaking to TNIE, Andhra Pradesh State Aquaculture Development Authority Vice Chairman Anam Venkata Rama Reddy, said, “The India-US trade deal will rejuvenate the aquaculture sector, and farmers will stand to gain significantly. The State government is also taking special measures to protect and support the sector.”