China, Vietnam And Belgium Come To The Rescue Of Shrimp Exporters
Shipments to China, which accounted for the largest share of non-US exports, grew by 16 per cent to $0.37 billion. The shipments to re-export hub Vietnam doubled to $0.18 billion. Export to Belgium also doubled to $0.14 billion, supported by stronger EU demand and enhanced compliance with traceability standards by the Indian players
Chennai: While shrimp shipments to the US are falling due to higher tariffs, China, Vietnam and Belgium have come to the rescue of exporters.
Since early FY26, Indian shrimp exports to the US have faced higher tariffs, including reciprocal duties alongside existing anti-dumping and countervailing levies. Between April and August 2025, India’s effective tariff was 18 per cent, compared with 13–14 per cent for Ecuador and Indonesia, the two other major shrimp-exporting nations to the US. Post-August, effective duty on Indian shrimp surged to 58 per cent. The higher tariff exposure has weakened India’s relative price competitiveness in US retail and foodservice channels, benefiting Ecuador and Indonesia.
Shrimp exports to the US reached $0.27 billion in May 2025, exceeding the average monthly export for the previous financial year. Exports to the US typically peak in the third quarter, but this year's peak has been front-loaded.
However, in August exports dropped by 35 per cent from July levels. US exports are expected to further decline in the latter half of this year, according to CareEdge.
Meanwhile, exports to non-US destinations surged 30 per cent to $1.38 billion in 5MFY26 from $1.06 billion in 5MFY25, driven by a broad-based demand across geographies.
Shipments to China, which accounted for the largest share of non-US exports, grew by 16 per cent to $0.37 billion. The shipments to re-export hub Vietnam doubled to $0.18 billion. Export to Belgium also doubled to $0.14 billion, supported by stronger EU demand and enhanced compliance with traceability standards by the Indian players.
Overall, non-US markets accounted for nearly 86 per cent of the incremental export value in 5M FY26, reflecting a clear shift away from the historically US-centric growth pattern.
“India’s shrimp export performance is expected to moderate by 10-12 per cent on the back of US tariff headwinds, partially cushioned by diversification into other geographies and frontloaded shipments during the initial months of the fiscal. In the near term, US buyers are likely to continue partially absorbing elevated tariff costs on existing orders, aided by holiday-season demand. However, a slowdown in fresh orders and sustained tariff pressure could weigh on export momentum in the last quarter of the financial year,” said Ratheesh Kumar, Associate Director, CareEdge Ratings.