US Duty Threat: AP’s Aqua Exporters Seek Centre’s Intervention

Vijayawada:AP’s aqua products exporters have said they would face a tough time following the US threat to impose a 50 per cent tariff and a 25 per cent penalty on imports from India from Aug 27.

The exporters have urged the Centre to direct the bankers to provide some financial relief on their loans and interest with regard to repayment, similar to what was done during the Covid-19 period, to help them overcome the crisis.

In view of the US threat, they urged the Centre to help them find alternative international markets and help increase domestic consumption.

AP exports aqua products of 17.81 lakh metric tonne worth ` 60,524 crore to 130 countries on a regular basis every year. The major export markets include USA-34.5 per cent, China-18.7 per cent, EU-14 per cent, Japan and Vietnam-5.4 per cent.

Of them, aquaculture contributes 38 per cent by quantity and 62 per cent in terms of value while capture fisheries contribute 62 per cent by quantity and 38 per cent in terms of value. The shrimp exports alone are valued at `40,013 crore while value added products add 11.32 per cent.

The exporters have harvested the aqua products raised during the summer in May, June and July and shipped some quantities based on orders from the buyers in the US markets. These are in the transportation stage now. The last consignment was shipped recently in a special vessel to ensure that it reached the US markets before September 16, to escape the additional levy of 25 per cent import duty.

Nearly 30 per cent of the harvested crop was shifted to refrigerated containers for storage in view of the prevailing uncertainty over the US tariffs/ import duty threats. Exporters are not sure whether the buyers in the US would still buy these stuff by paying a higher price, consequent on the hike done by the government there.

An aqua products exporter said, “There will be a huge market potential for our products in the US mainly during the holiday season for Christmas and New Year celebrations. As our products are in transit and a threat of additional tariff exists, there is a growing concern as to how buyers take the additional tariff and pay back to us.”

The aqua explorers are expecting some miracle to happen following another round of talks between President Trump, Russia’s Vladimir Putin etc. The US decision was in retaliation to the oil purchases by India from Russia despite the American sanctions vis-à-vis the Ukraine war.

All India seafood exporters association member T Jagdeesh said, “We are facing a tough time as we do not know how the buyers would react to the price hike in the US markets, vis-à-vis exports from India.”

AP exports aqua products through seaports in Kakinada, Visakhapatnam and Krishnapatnam. From there, the refrigerated containers will be shifted to a mother vessel docked elsewhere --may be in Sri Lanka, Singapore or even in a European country – for forward shipment to the US.

The products are preserved at minus-18 degrees Celsius with a shelflife of 24 months. Ideally, within three months of a shipment, they would be marketed.

The cumulative tariff breakdown is expected to be on these lines: countervailing duty-5.7 per cent, anti-dumping duty 4.46 per cent, reciprocal tariff with effect from August 7 (25 per cent), ad galore duty with effect from August 27 (25 per cent) with a total tariff exposure of 60.23 per cent.