Seafood exporters
Seafood exporters fear that India may lose market share to Ecuador, on which the Trump administration has imposed only a 10% tariff.
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“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, were $ 7.38 billion in FY25, with the United States having a share of 35% ($ 2.8 billion ).
The 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 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 Salmon to India in small quantities, where India has imposed a 30% duty.
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Seafood exporters had earlier urged the government to abolish 30% import duties on seafood from India, with the exception of fish varieties such as basa from Vietnam and Sardine from Gulf countries, to protect 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.
“The 25% duty announcement may appear challenging on the surface, but it’s also a timely reminder for us to diversify and strengthen our agri-export ecosystem. Indian farmers have always shown exceptional resilience, and this is yet another moment to rise above challenges. With the right market linkages, innovation in value addition, and strong institutional support, we believe this shift can open new global opportunities. Instead of seeing it as a roadblock, we see it as a stepping stone toward a more self-reliant and globally connected agri sector.” Said, Mr. Anil Kumar SG, Founder, Samunnati.