Caught in Trade War, Andhra’s Aquaculture Faces Collaps
Andhra Pradesh, Sep 6 (TTP): For over four decades, aquaculture in Andhra Pradesh has been the backbone of India’s seafood exports, sustaining hundreds of thousands of families and powering the rural economy. But now, the industry that earned the state the title “Aqua Hub of India” is staring at an unprecedented crisis.
A steep hike in U.S. import tariffs on Indian seafood has shaken the foundations of the sector, threatening jobs, incomes, and the survival of farmers and migrant workers who depend on it.
Impact of U.S. Tariffs
The crisis began when U.S. President Donald Trump signed an executive order on August 6, imposing an additional 25% tariff on Indian imports. The decision, implemented in two phases on August 7 and 27, effectively raised tariffs on shrimp — Andhra Pradesh’s primary aquaculture export — to 50%.
For families like that of Sharada Devi, a 35-year-old worker at a shrimp-processing plant in West Godavari, the decision came as a bolt from the blue.
“My entire family depends on my income. My husband is unwell, and both our children are about to join college. If I lose this job, I don’t know how we will survive,” she said.
The Aqua Hub of India at Risk
Andhra Pradesh contributes over 30% of India’s seafood exports, with vast inland waterbodies supporting shrimp and fish farming across Krishna, West Godavari, East Godavari, Nellore, Eluru, Prakasam and Konaseema districts.
Aquaculture here is not just farming — it is an ecosystem of labour-intensive industries: hatcheries, feed factories, ice plants, laboratories, processing units, and packaging houses. Together, they provide jobs to millions, especially migrant workers from Odisha, West Bengal, Tamil Nadu, Bihar, Jharkhand, Assam and beyond.
“One shrimp crop takes 100 days and costs nearly ₹9 lakh per acre. Under normal conditions, we earn ₹12 lakh. But now, prices have collapsed, and many of us are on the verge of bankruptcy,” says Krishnam Raju, a shrimp farmer from Akiveedu in West Godavari.
Women Workers Hit the Hardest
Shrimp-processing units, which run year-round, employ mostly women. Workers typically earn ₹700–₹800 a day. But since the tariff hike, units are downsizing.
Laxmi, 25, from Srikakulam, who has been working in a processing unit in Bhimavaram, was recently told to leave.
“My husband also works in a fish pond, and he too got a termination notice. We have children in school. We don’t know what to do next,” she said.
Factories and Farmers Struggle
At Godavari Mega Aqua Food Park, nearly 150 out of 400 workers are now without jobs as shrimp arrivals decline. Farmers cultivating the vannamei shrimp, which dominates exports to the U.S., are struggling to recover their investments.
Industry leaders warn that without urgent intervention, the collapse of Andhra’s aquaculture could have a domino effect on India’s seafood exports and the rural economy.
Possible Solutions
Experts and industry representatives are urging the government to:
- Seek new markets: Push exports to Russia, Southeast Asia, and the Middle East.
- Negotiate trade relief: Consider a Free Trade Agreement (FTA) with Russia and tariff exemptions.
- Support farmers: Exempt aquaculture from income tax and reduce input costs on feed and seed.
- Diversify production: Encourage farming of seabass, murrel, crab, tilapia, and other high-demand species.
Commissioner of Fisheries Rama Shankar Naik said the government is working on plans to diversify aquaculture and increase domestic consumption by introducing fish and shrimp into midday meals, Anganwadi centres, and public food festivals.
Thousands of Jobs at Stake
The Seafood Exporters Association of India (SEAI) and the Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) have written to the Union Government, urging Commerce Minister Piyush Goyal and MSME Minister Jitan Ram Manjhi to announce a relief package.
“Aquaculture sustains the rural economy by creating jobs and earning foreign exchange. Without immediate government intervention, thousands of livelihoods will be destroyed,” said K. Anand Kumar, SEAI Andhra Pradesh president.
The Road Ahead
As global trade tensions rise, Andhra Pradesh’s aquaculture sector finds itself at the crossroads of international politics and local survival. For workers like Sharada Devi and thousands of others, the future now depends on how quickly India can navigate the trade war and secure its Aqua Hub from collapse.