US’s 50% tariff on Indian shrimp exports is likely to impact the feed sector as well
As the US has imposed a 50% tariff on Indian shrimp exports, the feed sector is also expected to be impacted, as it will reduce feed consumption by shrimp producers.
Divya Gulati, President of CLFMA (Compound Livestock Feed Manufacturers Association), has urged the government to pursue Free Trade Agreements (FTAs) with other countries—similar to the one signed with the UK—to help the industry gain some relief.
Raw Material Shortage
Another challenge for the feed industry is the availability of raw materials, particularly corn. Corn constitutes a major portion of animal feed, accounting for about 50–55% of the total feed composition. India produces approximately 36–37 million tonnes (MT) of corn annually, out of which 9–10 MT is required for E20 ethanol production, while around 20–22 MT is required for poultry feed production.
The feed sector, particularly livestock feed, is growing at an annual rate of 6–8%, leading to a rising demand for corn. To address this challenge, the government diverted 5.2 million tonnes of rice for ethanol production. The animal feed industry is currently estimated at $16 billion, up from $11.5 billion in 2019.
Major importer USA
The USA consumes around 60% of the shrimp produced globally, which poses a challenge for India, as shrimp is not consumed in large quantities domestically. India exports approximately 1 million tonnes of shrimp to the US, highlighting the need to diversify its export markets.
