US Tariff Slash Likely To Boost AP’s Exports

Vijayawada: Export of several commodities from Andhra Pradesh to the US would see a major boost as the super power and India agreed for a deal to slash trade tariffs to 18 from the recently hiked 50 per cent on imports of Indian goods.

The top 10 exports from AP to the US are shrimp, pharma items, seafood, fertilisers/pesticides, natural barium sulphate, glands and other organs, ferry-alloys, building stone, electrical accessories, petticoats, vegetable extracts and electrical accessories.

In terms of value of exports to the US, the state recorded total exports worth Rs 33,480 crore in 2022-23; Rs 4,339 crore in 2023-24; Rs 42,946 crore in 2024-25 and Rs 25,414 in 2025-26 fiscal as on November last. As the volume of exports is rising year-on-year from 2022-23, it rose again in 2023-24. However, as the US imposed a 50 per cent tariff on imports from India from August, 2025, this resulted in a dip in the volume of exports.

With regard to export of shrimp, the level saw considerable growth. Accordingly, shrimp worth Rs 11.738 crore was exported to the US in 2022-23; Rs 12,215 crore in 2023-24; Rs 13,162 crore in 2024-25 and Rs 8,384 crore in 2025-26 (up to November last).

Shrimp exporters and aquaculture farmers are excited about the slash in US tariff to 18 per cent, and expressed confidence that this would help boost the exports. The shrimp vendors who shifted exports to Ecuador even for a high price would turn back to the US.

All India seafood exporters association member Thota Jagdeesh said, “We have suffered a 60 per cent fall in shrimp exports to the US in August due to the slapping of a 50 per cent tariff. Now, we are expecting that our export potential would increase by March/April after slashing the tariff to 18 per cent.”

Moreover, the total tariffs from Indian imports to the US are expected to be 26.26 per cent, with tariff-18 per cent, an anti-dumping duty of 2.49 per cent and a countervailing duty of 5.77 per cent.

Agriculture minister K. Atchannaidu, in a statement on Tuesday, said the reduction in US tariff would help enhance seafood products, including frozen shrimp by 10 to 15 per cent, giving a major relief to the seafood exporters and aqua farmers.

He said that from April to November, 2025, seafood exports from India to the US came down by 15 per cent, with exports of 2.01 lakh metric tonnes worth Rs 1.72 billion, with a dip by 6.3 per cent in terms of value.

Referring to MPEDA estimates, the minister said the volume of seafood exports from India would reach 14-15 lakh metric tonnes in 2025-26.

On export of sona masuri variety of rice, AP and Telangana export nearly 50,000 tonnes, worth Rs 200 crore per annum.

Rice exporters association president BV Krishna Rao said, “We are optimistic of a steep increase in our rice exports to the US following slashing of tariff to 18 per cent.”

Meanwhile, the rice exporters federation led by its president Prem Garg has welcomed the US move and said that a wave of positive sentiment is palpable across the rice export industry. The tariff parity would translate into improved competitiveness and stronger demand in key markets.

In a statement, IREF said India made a record production of nearly 149 million metric tonnes of rice and our exports to the US rose from 10 to 50 per cent despite the steep increase in duty.

Accordingly, India exported basmati rice worth Rs 2,849.16 crore and non-basmati rice of Rs 462.50 crore in 2024-25; and basmati rice of Rs 1,749.17 crore and non-basmati rice of 284.12 crore from April, 2025 to November, 2025.