Shrimp exports to fall 15-18% this fiscal as US tariffs push obligation above 58%: Crisil

New Delhi [India], August 31 (ANI): India's shrimp export volumes are anticipated to say no by 15-18 per cent within the present fiscal yr following a pointy hike in US tariffs, which can take the whole import obligation to 58.26 per cent, efficient August 27, based on a report by Crisil Rankings.

The ranking company stated that the transfer may also hit realisations, at the same time as Indian exporters try and shift their product combine and discover different markets.

The reciprocal tariff imposed by the US stands at 50 per cent, however for shrimp exports, a countervailing obligation of 5.77 per cent and an anti-dumping obligation of two.49 per cent have been already in place earlier than the latest tariff bulletins took impact.
Export revenues, which have remained flat over the previous 4 years, are actually projected to say no 18-20 per cent year-on-year, regardless of a short lived surge in shipments throughout the first quarter as exporters rushed to fulfil orders forward of the tariff hike.

In FY25, India exported round USD 5 billion value of shrimps, with the US accounting for practically 48 per cent of this.

With exporters unable to move on the elevated price to clients, working revenue margins are more likely to shrink by 150-200 foundation factors. This double blow of falling revenues and compressed margins will weaken debt safety metrics and put stress on the credit score profiles of exporters. An evaluation of 63 rated shrimp exporters–representing about 55 per cent of the trade's revenues–reflects this pattern, the ranking company added.The US has historically been a prime export vacation spot for Indian shrimp attributable to its beneficial market circumstances, repeat consumers, and higher revenue margins. Even with present anti-dumping and countervailing duties, in addition to a ten per cent reciprocal tariff launched in April 2025, exporters continued to provide to the US, as consumers absorbed a part of the price.Nonetheless, the steep hike in duties now locations India at a serious aggressive drawback in comparison with international locations like Ecuador, Vietnam, Indonesia, and Thailand, which face considerably decrease tariffs.

The report additional added that the falling enterprise quantity may also trigger the working margin to plunge to its decadal low of 5.0-5.5 per cent this fiscal. This shall be attributable to three causes: the influence of the tariff plus levies, decrease capability utilisation ensuing from a lack of income, and shrinking gross sales of value-added and enormous shrimps, which have been principally exported to the US and generated larger revenues and margins. (ANI)