AP: CM seeks Piyush Goyal’s support for aqua sector
06-Apr-2025 10:39 PM 2776
Vijayawada, Apr 6 (Reporter) Andhra Pradesh Chief Minister N Chandrababu Naidu on Sunday requested Union Commerce Minister Piyush Goyal to take efforts to exempt aqua products from these tariffs and support farmers. In a letter to Piyush Goyal, the Chief Minister said that the fisheries sector plays a key role in the state's GDP and seeks support for aqua farmers during this crisis. “The US government has imposed a 27 percent import duty on marine food exports from India. In the financial year 2023-24, marine food products worth USD 2.55 billion were exported from India to the US. Of these, shrimp accounted for 92 percent of the exports. Due to the 27 percent import duty imposed by the US on Indian shrimp exports, aqua farmers will incur losses,” Naidu explained in the letter. Stating that exporters like Ecuador are facing only a 10 percent duty from the US, which indirectly harms India while benefiting such countries, he highlighted that in addition, Indian exporters are already bearing a 5.77 percent Countervailing Duty (CVD). “Combining all duties, there is a nearly 20 percent duty difference between India and Ecuador. The new US tariffs came into effect on April five, 2025. Due to this, all shipments headed to the US are burdened with the increased duties. Products already harvested based on previous orders have been packed and stored in cold storages and ports. Due to the new regulations, these are now subject to increased duties,” he feared. Naidu noted that in the European Union, Indian exporters face non-tariff barriers including 50 percent inspection rates and 4-7 percent import duties. However, countries like Vietnam benefit from a Free Trade Agreement (FTA) with the EU, enjoying zero-duty access. As a result, such countries are effectively capturing the European market, Naidu said in the letter. “Countries like Vietnam, Thailand and Japan procure seafood from India, process it, and re-export to the US. But due to the new high tariffs on final products, even those countries are cancelling their orders from India. In Andhra Pradesh, cold storages are full, and farmers are in a dilemma about where to store their harvested aqua produce,” the Chief Minister revealed to the Union Commerce Minister. Meanwhile, more crops are ready for harvest, but exporters have halted procurement from farmers due to the 27 percent duty. These developments are pushing the state's aqua sector into a crisis. Aqua farmers, hatcheries, feed mills, processors and exporters — all stakeholders are being affected, he stated. Naidu requested the Government of India to hold necessary discussions with the US government to include shrimp in the exemption list from duties...////...
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