Seafood, basmati rice exporters to feel the pinch
By Sandip Das
India’s exports of agricultural agriculture products including shrimp, basmati rice, coffee and tobacco to the US are likely to be hit with the US president Donald Trump on Wednesday announcing a 25% tariff on the country.
Trade sources said while total exports of farm products to the US are estimated at $ 5 billion, the shipment of shrimp and rice which have a share of 60% in the export basket would be hugely impacted. These products don’t attract any duties in the US now.
Seafood exporters
Seafood exporters fear that India may lose market share to Ecuador, on which the Trump administration has imposed only a 10% tariff.
“We may lose the market to Ecuador because of higher duties and freight cost,” KN Raghavan, secretary general, Seafood exporters association of India, told FE. He said that the industry has initiated a series of measures to build up infrastructure to boost exports to the US over the years.
India’s seafood exports, mostly frozen shrimp, was $ 7.38 billion in FY25, with the United States having a share of 35% ($ 2.8 billion ).
Bulk of the country’s seafood exports to the US is ‘Vannamei Shrimp’. Ecuador had a 19% in the USA’s annual seafood import of $ 6 billion.
The exports of aromatic and long grain basmati rice to the US will be hit where India currently holds a dominant position against its competitor Pakistan.
“Pakistan, our competitors, stands to gain if this duty is being imposed exclusively on India,” Ranjit Singh Josan, vice-president, basmati rice millers and exporters association, said. Josan said the consumers will have to pay an additional $ 240/tonne over the basmati rice shipped at around $ 1200 tonne at zero duty to the US.
Rice exports
India exported around 0.27 million tonne of basmati rice to the US valued at $ 300 million in FY25.
India may also lose share in coffee and tobacco exports to the US due to higher tariffs, trade sources said.
Seafood is India’s largest agricultural export to the US followed by other products including basmati rice, spices, coffee, and tobacco. The US exports only Atlantic Salman to India in small quantities where India has imposed a 30% duty.
Seafood exporters had earlier urged the government for abolition of 30% import duties on seafood by India with the exception of fish varieties such as basa from Vietnam and Sardine from Gulf countries, for protecting domestic fishing communities.
The bilateral agri-trade between India and the US was around $6.6 billion in 2024, while India exported $ 5 billion worth of agri-goods against an import of only $ 1.5 billion.
This article has been republished from The Financial Express.