THOOTHUKUDI: Seafood companies in the district have slashed production by 50% after the United States imposed steep tariffs on Indian imports from Wednesday.
The levy, introduced by US President Donald Trump, has raised duties on seafood imports to between 58.42% and 60%, throwing the industry into turmoil. Of the 25 seafood exporting companies in Tamil Nadu, at least 15 operate from Thoothukudi, which ships frozen shrimps, squids, octopus, fish and sea crabs to the US, Japan and Europe. These firms source catch from 13 coastal districts, process and package it for shipment through VOC Port.
The new tariff structure — 50% basic duty, 2.65% anti-dumping duty and 5.77% countervailing duty (CVD) — has left exporters reeling. “The reciprocal tariff has been revised several times, leaving seafood producers in confusion as well,” a private company source said. Another exporter added, “Sixty per cent of Vannamei shrimps are exported to the US, with the rest going to China, Japan, Canada and Europe. It takes 45 days for consignments to reach the US.”
A seafood exporter told the TNIE that purchases and shipments had already slowed. “We usually export 50 containers of seafood a month, of which 20 are destined for the US. Now, exports are being scaled down gradually,” he said.
India exported 17.81 lakh tonnes of seafood worth `60,523 crore ($7.38 billion) in 2023–24, according to MPEDA. Frozen shrimp accounted for 40.19% of the volume and 66.12% of the dollar earnings. The US was the largest importer, buying 3.29 lakh tonnes valued at $2.55 billion. Tamil Nadu’s share stood at 89,001 tonnes — around 5% of India’s total exports — with 66% being cultured shrimp fetching $4.88 billion.
Calling the tariff hike “another blow”, exporters said they were already grappling with freight challenges. “We are forced to reroute shipments via the Cape of Good Hope, adding 9,000 nautical miles, because of Houthi attacks along the Red Sea and Mediterranean,” one recalled.
SEAI – Tamil Nadu Region president Selwin Prabhu warned that competitors such as Ecuador and Indonesia, which face tariffs of just 15% and 19%, may seize India’s market share. “It is a labour-intensive industry, and the tariffs could lead to job losses. Blue-collar workers will be at the receiving end,” he said, urging the government for soft loans, subsidised credit and emergency support.