India, the world’s second-largest shrimp producer, is facing a severe threat as US tariff hikes and rising production costs push farmers toward heavy losses. Shrimp farmer Buddhadeb Pradhan from West Bengal is among many taking risky decisions—such as cultivating a second crop despite high disease risks—simply to recover investments. Shrimp prices have plunged from INR 300 to ₹230 per kg after the United States imposed steep tariffs, including anti-dumping and countervailing duties totaling 58.26%.
India exported USD 5 billion worth of shrimp in FY25, with nearly half going to the US. But with high duties, farmers fear losing their largest export market. Production costs remain high at INR 275 per kg, putting farmers like Nardu Das on the brink of financial collapse. Many borrow heavily for land leases, power, feed and seed—making price crashes devastating.
India produces about 1.1 million tonnes of shrimp annually, mostly Pacific whiteleg (vannamei). Shrimp farming is spread across nine coastal states and supports nearly 10 million people. But falling prices and disease outbreaks are forcing farmers to dump stock and avoid new cycles. Farmers also blame poor-quality imported brood stock from the US, which often fails to adapt to Indian conditions, causing further disease issues. They urge the government to promote locally bred brood stock to reduce risk.
The crisis has hit hatcheries hard. India’s 550 private hatcheries, which produce around 80 billion shrimp seeds a year, are seeing demand collapse. Nearly half have shut down as farmers stop buying seed. Hatcheries have already destroyed 7–8 billion seeds in four months due to negligible demand.
Adding to India’s difficulties, Ecuador—its biggest competitor—is rapidly capturing the US market. With lower prices, better-quality vannamei and tariffs of only 15%, Ecuador exported over one million tonnes of shrimp to the US in the first nine months of 2025.
Experts warn that India must diversify into the domestic market, which remains largely untapped, to reduce dependence on the US and stabilize the industry in the long term.
