Trump imposed 50% reciprocal tariff , shrimp exporters in trouble
Indian exporters of seafoods were already in trouble because of countervailing duty of 5.77% and anti-dumping duty imposed by USA on our country and now USA has come up with a reciprocal tariff of 50% which is further going to impact the livelihoods of those who are dependent on aquaculture.
Advantage to Indian competitors
While talking about our main competitors Ecuador, Indonesia and Vietnam they are in a much better position than us as they did not have countervailing duty as much as India has and reciprocal tariff of these countries are also less i.e. 15%, 19%, 20% respectively which helps to provide these countries competitive advantage in price over India.
Market size of India in USA
India has market share of approx $3bn in USA seafood industry also USA is the biggest consumer of shrimps as almost 60% of the shrimps cultivated all across the world are consumed by USA alone.
Stakeholders Suggestions
According to Divya Kumar Gulati, Chairman of CLFMA (Compound Livestock Feed Manufacturers Association of India,) Indian exporters should also work upon diversification of market and should consider other growing countries like East Asia, Middle East and Africa as this tariff is not only going to affect price competitiveness but will also affect livelihood of those who are dependent on the aquaculture.
Gulati also suggested that Government should help by reinstating Interest Equalisation scheme (IES) which is an initiative taken by the government to help Indian exporters by reducing cost of borrowing for export related activities.
She also asked about RoDTEP (Remission of Duties and Tax on Exported Products) which helps in providing rebate for the duties and taxes being paid by the exporter which makes Indian products more competitive in global markets.
