Bhubaneswar- Odisha, one of India’s leading exporters of marine products, sends nearly seventy percent of its shrimp and seafood exports to the United States. Every year, the state earns close to two thousand crore rupees from this trade, making it a crucial source of foreign exchange. However, following US President Donald Trump’s announcement of a fifty percent import duty on Indian products, exporters and farmers across Odisha are gripped by uncertainty and concern. Such a steep tariff makes it nearly impossible for Indian suppliers to remain competitive in the American market, where Ecuador and Indonesia, both major shrimp exporters, face duties of only fifteen and nineteen percent respectively. This stark difference in trade conditions will likely push Odisha’s products out of the market, as American buyers will turn to cheaper sources.
The impact extends far beyond the export companies. Over ten thousand shrimp farmers in Odisha, whose cultivation is primarily aimed at international buyers, face the risk of losing their income. Workers in seafood processing units will also be affected, as orders from the US have already begun to dry up. Exporters are halting shipments to America, knowing that the increased duty will make their products unaffordable for US customers. Industry voices, such as Priyanka Mohanty of Falcon Group, stress that unless a trade agreement is reached between India and the US, the uncertainty will persist. They hope that negotiations might lead to a reduction or revision of tariffs, as has happened with other nations. Until then, Odisha’s shrimp export sector faces a serious threat.
Five rounds of discussions have already taken place between the two countries without any breakthrough, and the sixth round is scheduled for later this month in New Delhi. The outcome will be decisive for the future of Odisha’s seafood industry, which now stands at a crossroads.
