US Tariffs Hit India’s Seafood and Agri Exports Unevenly
Why in the news
New 27% US reciprocal tariffs worried Indian agri and marine exporters. Experts expected short-term disruption, but India’s rate being lower than that of several rivals may help in the longer run.
Key facts
- Seafood: about $1.9 billion exported to the US in FY24, with Vannamei shrimp prominent.
- Shrimp duty was around 8%; with countervailing duties it may reach 45%.
- Thailand, Vietnam and Indonesia face even higher tariffs, which could make Indian seafood more competitive.
- Basmati rice: the US imports 300,000-350,000 tonnes yearly; volatility was expected for 2-3 months with no lasting damage.
- Oilseeds, processed fruit, spices and cashew might lose ground to lower-tariff Brazil.
Agrochemicals and totals
| Item (FY24) | Figure |
|---|---|
| Global agrochemical exports | $5.5 billion |
| Agrochemical exports to US | $1.1 billion |
| Duty on Indian agrochemicals vs China | 6% vs 24% |
| Agriculture exports | $38.19 billion |
| Marine exports | $7.37 billion |
- The duty gap is expected to offset India’s higher production costs in agrochemicals.
Exam angle
- Reciprocal tariff on India: 27%.
- Key shrimp variety: Vannamei.
- Competitors in seafood: Thailand, Vietnam, Indonesia.