Naidu plea for Central intervention

Vijayawada: Andhra Pradesh Chief Minister Nara Chandrababu Naidu has sought central government support for AP to get exemption from high US import duty to the aqua products exported from the state.

This, he said, is by way of a support to the aqua farmers who are upset over the new US import tariff that came into effect from April 5.

In a letter addressed to the Union commerce minister Piyush Goyal on Sunday, the CM called for efforts to get exemption for aqua products from the increased tariffs.

He said that the fisheries sector was paying a key role in AP’s GDP.

Notably, the Trump administration has imposed a 27 per cent import duty on marine food exports from India. In 2023-24, India exported marine foods worth $2.55 billion to the US. Of these, shrimps accounted for 92 per cent.

The CM said that imposition of 27 per cent import duty would hit the aqua farmers hard. Exports to the US from Ecuador were facing an import duty of only 10 per cent form the US, he said.

Naidu said the Indian exporters were already bearing a 5.77 per cent countervailing duty. By combining all duties, the duty difference would be coming up to nearly 20 per cent--between India and Ecuador.

He expressed concern over how all shipments heading to the US were burdened with increased duties. The products that are harvested and stored in cold storages and ports would face the burden of increased duties.

Naidu explained that in the European Union, Indian exporters face non-tariff barriers including 50 per cent inspection rates and 4-7 per cent import duties while countries like Vietnam would benefit from a Free Trade Agreement with the EU and enjoy zero-duty access.

As a result, such counties were effectively capturing the European market.

The CM said countries like Vietnam, Thailand and Japan procured seafood from India and processed and re-exported it to the US. With the new high tariffs on final products, they were also canceling their orders from India.

Referring to Andhra Pradesh, the CM said cold storages were full with aqua products and the farmers were in a dilemma as to where to store their harvested aqua produce. More crops were ready for harvest while exporters have stopped procurement due to the high import duty. Such a scenario would push AP’s aqua sector into a crisis.

Naidu said, “I request that the Centre hold necessary discussions with the US government to include shrimp in the duty exemption list. Your timely intervention will help protect the livelihood of lakhs of people who depend upon the aqua sector.”