A group of twelve men jovially entered a shrimp pond in Andhra Pradesh, India, dragging a large net behind them in an attempt to catch shrimp. Despite their light-hearted demeanor, there was an underlying worry about the 50% tariffs imposed by the United States on Indian exports, particularly impacting the frozen shrimp industry in India.
Bhaskar Kokkiligadda, a daily worker at shrimp farms near Pedapatnam, expressed the desperation felt by everyone in the industry. Prior to the tariffs, the U.S. was the largest market for Indian shrimp exports, accounting for over 40% of the market share and generating billions in revenue. However, with the tariffs in place, shrimp harvesting has become more sporadic, and shipments to the U.S. have significantly decreased.
Workers like Kokkiligadda are facing reduced working days and wage cuts, pushing them to seek additional income wherever possible. The situation is dire for the entire shrimp industry in India, which supports over a million jobs across export companies, processing plants, and small-scale farms.
The tariffs, initially set at 25% and later increased to 50% by U.S. President Donald Trump as a response to India’s crude oil purchases from Russia, have given Ecuador a competitive advantage in the international shrimp market. This has led to a nearly 40% decrease in the prices received by farmers like Praveen Sabbineni, who runs three shrimp farms in Andhra Pradesh.
The impact of the tariffs is especially harsh on small-scale farmers like Edukal Basani, who recently harvested shrimp but struggled to find buyers due to the hefty U.S. tariff. Despite government subsidies, many farmers are facing financial difficulties and are considering abandoning shrimp farming altogether.
The ripple effects of the tariffs are felt across the industry, with hundreds of processing plants employing mainly women who peel and devein shrimp. These women, like Lalitha Rajeshwari, rely on meager daily wages to support their families, highlighting the lack of alternative job opportunities in the region.
Indian officials are seeking a trade deal with the U.S. to alleviate the tariff burden, but negotiations are challenging due to disagreements over trade barriers and sectoral openness. The uncertainty surrounding the trade deal is causing anxiety among workers like Radhika Enti, who fear the potential closure of processing plants and the loss of their livelihoods.
The plight of Indian shrimp farmers and workers underscores the urgent need for solutions to mitigate the impact of the tariffs and safeguard the future of the industry.