Andhra CM Chandrababu Naidu writes to Commerce Minister Piyush Goyal, urging support for aqua farmers amid US duty hike

ANI April 7, 2025 261 views

Andhra Pradesh Chief Minister Chandrababu Naidu has written to Commerce Minister Piyush Goyal highlighting the critical challenges facing Indian aqua farmers due to new US import duties. The letter emphasizes that the 27% import duty will significantly impact marine food exports, particularly shrimp, which constitute 92% of the $2.55 billion trade. Naidu argues that this duty puts Indian exporters at a competitive disadvantage compared to countries like Ecuador and Vietnam. The communication seeks urgent government intervention to protect the state's fisheries sector and mitigate potential economic losses.

"The fisheries sector is playing a crucial role in the State's GDP" - Chandrababu Naidu
Amaravati, April 7: Andhra Pradesh Chief Minister Chandrababu Naidu has appealed to the Centre to stand by the aqua sector or fish farming products, which are facing loss due to heavy duty being levied by the United States, a release said on Monday.

Key Points

1

US imposes 27% import duty on Indian marine food exports

2

Shrimp exports worth $2.55 billion at risk

3

Andhra seeks trade protection measures

In a letter to the Union Minister for Commerce and Industry, Piyush Goyal, CM Naidu asked the Centre to come to the rescue of aqua farmers by making efforts to exempt the aqua products from this additional duty.

Informing the Union Minister that the fisheries sector is playing a crucial role in the State's Gross Domestic Product (GDP), Chandrababu Naidu mentioned that the Centre should stand by the aqua farmers when they are in a deep crisis.

The Chief Minister mentioned in the letter that the US Administration has imposed a 27 per cent import duty on marine food exports from India. In 2023-24, marine food products worth 2.55 billion dollars were exported from India to the US of which shrimp alone accounted for 92 per cent, he wrote.

He pointed out that the US is imposing a duty of only 10 per cent on exporters like Ecuador, which indirectly harms India.

CM Naidu mentioned further that the exporters from the country are already bearing a 5.77 per cent Countervailing Duty (CVD), adding that when all these duties are put together, India is facing a 20 per cent duty difference compared to Ecuador.

The new US duty imposed afresh came into effect on April 5, due to which all the shipments to the US are to face this additional burden. Products already harvested based on previous orders have been packed and are now in cold storage and ports, the Chief Minister said. Following the new regulations, these too are now subject to increased duties.

In the European Union, Indian exporters face non-tariff barriers including 50 per cent inspection rates and four to seven per cent import duties, Chandrababu said in the letter to Piyush Goyal

He also mentioned that countries like Vietnam, however, benefit from a Free Trade Agreement (FTA) with the European Union, enjoying zero-duty access.

As a result of this, these countries are effectively capturing the European market, he felt. Countries like Vietnam, Thailand and Japan procure seafood from India, process it and re-export it to the US, the Chief Minister said. "But due to the new high tariffs on final products, even those countries are canceling their orders from India," he added.

Reader Comments

R
Rajesh K.
This is a serious issue! Our aqua farmers work so hard and now facing such unfair treatment. Glad CM Naidu is taking action 👏 Hope the Centre responds quickly before more livelihoods are affected.
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Sunita P.
My brother is an aqua farmer in Nellore. The last 6 months have been terrible for his business. The government needs to step in with some financial support package while they negotiate with US.
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Arjun M.
While I support the farmers, I wish our leaders would be more proactive rather than reactive. These tariff changes didn't happen overnight - where was the early warning system? 🤔
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Priya R.
The duty difference with Ecuador is shocking! 27% vs 10% is clearly unfair trade practice. India should take this up strongly at WTO. Our farmers deserve level playing field.
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Vikram S.
Maybe time to focus more on domestic market and other export destinations? Over-reliance on US market seems risky. Just a thought from business perspective.
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Lakshmi T.
The EU inspection rates sound excessive too! 50% inspection while Vietnam gets zero duty... how is this fair trade? 😠 Hope our negotiators can get better terms for our farmers.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
Chandrababu Naidu Piyush Goyal Seafood Exports Andhra Pradesh US Trade Marine Farming
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