India adopts a dual-track strategy to boost seafood exports, enhance value addition, and reinforce its position in global seafood trade.
India’s seafood exporters are adjusting to a changing trade landscape with the United States following a Supreme Court ruling. The decision, issued on February 20, 2026, invalidated the previous US Reciprocal Tariffs, which ranged from roughly 25% to 50% for Indian seafood, particularly shrimp.
In response, the US administration introduced a temporary 10% import surcharge under Section 122 of the Trade Act of 1974, effective February 24, 2026, for a period of 150 days. Officials have hinted at the possibility of increasing the tariff to 15%.
Analysts predict a short-term boost in shipments, as exporters move products from customs-bonded warehouses to the US market. Wholesale shrimp prices have become competitive at around $6.25 per pound. Over the longer term, India is expected to pivot toward value-added products, such as breaded or butterflied shrimp, leveraging lower tariffs to enhance margins.
Despite the regained competitiveness in the US, Indian exporters face stiff competition from Ecuador, which benefits from shorter shipping routes and lower logistics costs. Vietnam and Indonesia continue to contend with higher tariffs of approximately 49% and 24%, respectively, while India’s new US surcharge now stands at around 10%, plus standard anti-dumping and countervailing duties.
Industry experts caution against over-reliance on the US market. The newly finalized India–EU Free Trade Agreement (FTA), signed on January 27, 2026, provides zero-duty access to Europe, offering a significant alternative market. Additionally, exports to China and Vietnam have grown, with Vietnamese imports of Indian shrimp doubling in 2025. These developments reflect lessons learned from last year’s tariff spike, highlighting the risks of concentrating on a single market.
The contrasting trade regimes are shaping export strategies:
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US Tariffs: Reduced from roughly 58% to 10–15%, restoring competitiveness against Indonesia and Vietnam.
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EU FTA: Tariffs cut to zero from 4.2–7.5%, providing a legally binding 10-year framework and stable market access.
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Market Focus: The US remains a destination for high-volume, raw products, while the EU emphasizes premium, value-added seafood, including squid, cuttlefish, and octopus.
Non-tariff measures in Europe, such as 50% consignment sampling and stringent “Farm-to-Fork” traceability requirements, mean Indian exporters must adopt standards like ASC (Aquaculture Stewardship Council) certifications to fully benefit. The US market continues to be more accessible for smaller or less-organized producers.
In the immediate term, India is expected to see a rebound in US shipments as exporters capitalize on lower rates. Over time, a structural shift toward Europe is anticipated, with larger processors investing in EU-specification facilities for ready-to-eat seafood, fetching $10–$12 per kilogram in Brussels versus $6–$8 per kilogram for raw shrimp in New York.
While the US tariff relief provides temporary stability, the EU FTA is positioning India for long-term growth as a major player in the global seafood market.
News Courtesy : DT next