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Photo: Stockfile/FIS
Indian Shrimp's Dual Challenge: Exports Hit by US Tariffs While Striving for Sustainability Certification
INDIA
Monday, October 13, 2025, 00:10 (GMT + 9)
The Indian shrimp industry faces taxes up to 58% in the US, its main market, at a crucial time when the country is seeking MSC certification for 10 species to gain competitiveness and market access.
NEW DELHI - India's vital seafood export industry stands at a crossroads, facing significant challenges in its primary market, the United States, while simultaneously pursuing an ambitious sustainability strategy to boost global competitiveness.
On August 27, the United States imposed retaliatory tariffs of up to 50% on various Indian products. For frozen shrimp, India’s star commodity, this adds to the existing anti-dumping (2.5%) and countervailing (5.8%) duties, raising the total tax burden to over 58%. This blow comes at a critical time, as the US imported 311,948 tonnes of Indian shrimp worth $2.68 billion in the 2024-2025 fiscal year, accounting for nearly 50% of the country's total shrimp exports.
Experts from Crisil project that India's shrimp exports could fall between 15% and 18% in the current fiscal year, as US importers shift to Vietnam and Ecuador, which now enjoy a tariff advantage. China could also increase its market share if it maintains its current trade deal with Washington.
The Bet on MSC Certification as a Lifeline
Despite the headwinds, India is making determined progress toward achieving Marine Stewardship Council (MSC) certification for 10 marine fish species, a strategic move to improve competitiveness and market access. The first species is expected to apply for full certification by 2026.
At a technical symposium organized by the MSC in collaboration with the Sustainable Seafood Network of India (SSNI) and the Seafood Exporters Association of India (SEAI) during the World Food India expo, Dr. Ranjit Suseelan (MSC India) stated: "Priority species are in advanced stages of assessment, raising expectations of MSC certification next year."
MSC certification is crucial for the sector. According to MSC data, certified seafood typically sells for up to 30% more, a vital advantage as key markets like the US increasingly prioritize sustainability and eco-labeling as a condition of access. The Federal Ministry of Fisheries has pledged funds from the PMSSY 2.0 program to support the necessary research, assessment, and traceability.
Abraham Tharakan (SEAI) emphasized: "Sustainability certification will help Indian seafood overcome technical and trade barriers and enhance consumer confidence."
A Sector at Risk and the Need for Diversification
Shrimp is a key commodity for India, contributing $5.17 billion, nearly 70% of the country's total seafood export value last year. The new tariff policy puts approximately 500,000 shrimp farmers and millions of workers across the supply chain at risk in key states such as Andhra Pradesh, Odisha, and Tamil Nadu.
In response, the Indian government is being urged to roll out an emergency package that includes concessional credit, export credit guarantees, interest subsidies, and temporary support for farmers. In the longer term, India is advised to diversify its markets, upgrade farming and processing infrastructure, invest in breeding stock, feed, and disease control, and expand the domestic market.
Michael Marriott, MSC Program Director, underscored the global urgency: "37.7% of global fish stocks are currently overfished. MSC-certified fisheries are generally more productive and better managed." Indian industry leaders hope that MSC certification will not only boost exports but also ensure sustainable livelihoods for small-scale fishers, creating a healthier and more equitable seafood ecosystem in the long term.
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