Seafood exporters urged to expand market reach due to escalating tariffs imposed by the United States
In the wake of the United States implementing a 25% tariff on most Indian goods from August 7, with a potential increase to 50% from August 27, India is actively pursuing alternative markets to reduce its dependency on the US. The major alternative markets currently targeted include the European Union (EU), Japan, South Korea, the United Kingdom (UK), Southeast Asia, West Asia, Russia, and Australia.
The government has urged exporters to diversify into these regions to mitigate risks caused by the US tariff jump. The export strategy includes enhancing product value, focusing on premium packaging and value-added products, supported by funding from the Fishery Infrastructure Development Fund. Japan, South Korea, and Southeast Asia are significant new focus areas, alongside traditional markets like the EU, UK, and West Asia.
The UK seafood exports showed potential growth, with India exporting over USD 104 million worth of seafood in 2024-25, primarily frozen shrimp, and anticipating a surge due to a recent trade deal. However, China, another traditional market, has become cautious, asking exporters to hold shipments, anticipating a price drop, which complicates diversification.
Union Minister Rajiv Ranjan Singh, the Minister of Fisheries, Animal Husbandry and Dairying, emphasized the need for higher value addition and improvements in packing for seafood exports. He urged seafood exporters to brave the current challenges and find new markets.
The Marine Product Export Development Authority (MPEDA) has been tasked to assist exporters in four major producing states, preparing for new markets, and identifying specific fish varieties. MPEDA will also assist in value addition and modernizing processing and packing infrastructure for seafood exports.
The government has come out with draft guidelines on fishing in high seas and Exclusive Economic Zones, seeking public comments within a month. The Fishery Infrastructure Development Fund is available for seafood exporters to upgrade and strengthen value-addition, processing, and packaging facilities.
However, when asked if exporters have demanded a financial package, Minister Singh did not provide a direct reply. The article does not contain any information about a financial package for seafood exporters or any related matters such as advertisements, broker calls, or share market live updates.
Despite the challenges, India is countering the US tariff increase by tapping into diverse global markets with strategic government support emphasizing quality, value addition, and infrastructure upgrades. The US seafood segment is worth $6.25 billion in India's agricultural exports, and the government will consider and examine suggestions made by seafood exporters to make changes in the Pradhan Mantri Matsya Sampada Yojana (PMMSY) guidelines. The US tariff increase is seen as a bargaining tactic in bilateral talks for a trade agreement.
- The Indian government is encouraging exporters to live in the new markets like the European Union, Japan, South Korea, the United Kingdom, Southeast Asia, West Asia, Russia, and Australia, due to the increased tariff on goods by the United States.
- The move to diversify into these regions is aimed at reducing the country's dependency on the US and mitigating risks caused by the tariff jump.
- Japan, South Korea, and Southeast Asia are becoming significant new focus areas, alongside traditional markets, in the export strategy.
- The government has made funds available from the Fishery Infrastructure Development Fund to support the enhanced product value, premium packaging, and value-added products for exports.
- The Marine Product Export Development Authority (MPEDA) is assisting exporters in preparing for new markets, identifying specific fish varieties, and modernizing processing and packing infrastructure for seafood exports.
- The US tariff increase on Indian goods is viewed as a bargaining tactic in bilateral talks for a trade agreement, and the government is considering and examining suggestions made by seafood exporters to make changes in the Pradhan Mantri Matsya Sampada Yojana (PMMSY) guidelines.
