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TMI BlogIndia’s Shrimp Export Crisis: Finding Resilience Through Diversification and Policy Support.X X X X Extracts X X X X X X X X Extracts X X X X ..... India’s Shrimp Export Crisis: Finding Resilience Through Diversification and Policy Support. X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 billion annually-is currently under pressure following the imposition of countervailing duties (CVD) by the U.S. Department of Commerce, citing alleged subsidies provided by the Indian government. With tariffs ranging up to 26%, Indian exporters are facing renegotiations, delayed shipments, and potential revenue losses worth millions. This has prompted urgent calls for strategic redirection-both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the industry and government level. ⚠️ Understanding the Crisis The U.S., which traditionally accounts for over 40% of India's shrimp exports, has initiated a countervailing duty investigation under trade laws that target countries providing subsidies which might harm U.S. domestic producers. * Nearly 2,000 containers of shrimp are reportedly at risk due to the tariff hike. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * Andhra Pradesh, India's aquaculture hub, has seen immediate effects with reduced buyer interest and falling farmgate prices. * Even U.S. importers like Walmart and Kroger are reportedly re-negotiating prices and quantities. ✅ Steps to Resolve the Crisis: Strategies for Resilience 🔄 1. Diversification of Export Markets To reduce over-dependence on the U.S.: * Target Market ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s: Expand aggressively into China, Japan, South Korea, the EU, Russia, and the Middle East. * Existing Momentum: Exporters like Coastal Corporation Ltd have already begun shifting volumes to China and Russia, where demand for Indian black tiger and vannamei shrimp is rising. 🛡️ 2. Government & MPEDA Support a. MPEDA (Marine Products Export Development Authority) Initiatives: * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Facilitating B2B buyer-seller meets with alternative markets. * Promoting India's sustainability credentials and traceability programs like Nekkanti's Blockchain Shrimp to build trust with buyers. * Developing and promoting "India Brand" shrimp through quality certification. b. GOI (Government of India) Policy Intervention: * Diplomatic engagement with the U.S. to appeal for duty r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... econsideration or negotiate a settlement. * Subsidy rationalization to align with WTO norms, thus avoiding further trade disputes. * Exploring trade deals and bilateral seafood cooperation agreements with alternate markets (e.g., Japan, UAE, Russia). 🧪 3. Value Addition * Move from raw frozen shrimp to ready-to-eat, peeled & deveined, and cooked products. * Higher-end products att ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract premium pricing and reduce exposure to raw commodity volatility. 🏭 4. Support to Farmers * Ensure minimum procurement price mechanisms to protect aquaculture farmers from price crashes. * Provide direct subsidies or interest-free loans to small farmers and exporters affected by the CVD. * Promote better feed quality, disease prevention, and stocking density controls to increase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... farm yields. 🌍 Opportunities in Alternate Markets Market Current Status Opportunity China Growing demand for value-added shrimp Replace Ecuador as a major source EU Highly regulated but premium-paying Push for certification-driven exports Japan Known for high quality standards Value-added shrimp, ready-to-cook segments Russia Demand revived post Western sanctions Scope for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expansion with localized packaging Middle East Growing retail and HORECA demand Strategic partner in long-term diversification 📣 Conclusion: A Call for Unified Action The U.S. countervailing duty has served as a wake-up call for India's seafood industry. The response must be multi-dimensional: from government diplomacy and strategic trade deals to farmer support and market in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... novation. Agencies like MPEDA, FIEO, and Commerce Ministry must play a proactive role in guiding this transition, while exporters must modernize their business models.
India must not just react to this crisis-but use it as a turning point to build a diversified, resilient, and globally competitive aquaculture export ecosystem. X X X X Extracts X X X X X X X X Extracts X X X X ..... essionals ..... X X X X Extracts X X X X X X X X Extracts X X X X
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