The ban was first imposed after white spot virus was detected in Indian shrmp. This restriction badly hurt exporters—especially in Andhra Pradesh, India’s top shrimp-producing state—forcing them to rely heavily on the US market. When the US later imposed high tariffs on Indian seafood, exporters began talks with Australia to reopen trade.

On the third day of his visit, Lokesh confirmed that Australia had approved the first import of Indian shrimp. “A long-standing hurdle for Indian seafood exporters has been removed,” he said on X (formerly Twitter). “The first import approval for Indian shrimp has been granted.”

Lokesh said the move would boost India’s aquaculture exports and reduce dependence on a single market. He thanked both governments for working together to resolve the issue and support seafood trade.

During his trip, Lokesh met officials from Seafood Industry Australia (SIA), including CEO Veronica Papacosta and engagement manager Jasmine Kelleher. They discussed possible partnerships in seafood processing, quality improvement, and expanding imports from India.

Highlighting Andhra Pradesh’s dominance in seafood exports—accounting for more than 60% of India’s aquaculture output—Lokesh noted that the state exported 16.98 million tons worth $7.4 billion in 2024–25. He called for stronger trade ties, technology exchange, and investment in cold chain and packaging facilities to improve quality and sustainability.

Lokesh also encouraged cooperation on climate resilience and sustainable aquaculture, adding that seafood trade could further strengthen India-Australia economic relations.

Seafood Industry Australia, representing over 30,000 members across fishing, aquaculture, and processing, contributes around AUD 3.5 billion to the Australian economy each year.

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Tariffs Upend a Dependable Trade Flow

The U.S. recently imposed a 58% tariff on Indian shrimp including anti-dumping and the extra 25%. For an industry where margins are already thin, the move has made Indian shrimp far less competitive in its top export destination.

As a result, shipments have slowed drastically. Exporters report cancelled or postponed orders, while inventories of frozen shrimp pile up in cold storage. Processing plants, which rely on steady exports to keep their lines running, have scaled back operations.

Farmers’ Plight: Falling Prices, Mounting Debts

Shrimp farmers in Andhra Pradesh and other coastal states are among the hardest hit. With exporters cutting back purchases, farm-gate prices have plunged, making it nearly impossible for farmers to cover the cost of feed, pond maintenance, and loans.

Many have warned they may abandon shrimp cultivation altogether. One farmer told U.S. public radio that the situation is “very, very bad” and might force him to stop farming after his next harvest. For smallholders, the combination of low prices and outstanding bank debts is pushing them into financial distress.

Exporters/Processors: Factories and Markets Under Pressure

Exporters — who are also the processors running India’s shrimp factories — face a different but equally damaging crisis. With U.S. demand drying up, their frozen inventories are swelling. To stay liquid, they have cut the price offered to farmers, which in turn worsens the farmers’ position.

Processing plants have slowed production lines, with reports of workers losing hours or shifts. This is particularly devastating for thousands of women who depend on shrimp peeling and packing jobs to support their families.

The U.S. tariff shock has also disrupted shipping schedules, forcing exporters to renegotiate contracts and absorb losses on already shipped consignments.

Coping Strategies: Diversification and Survival Tactics

Despite the disruption, the industry is trying to adapt:

• Shifting Markets: Exporters are gradually redirecting inventories toward Europe, China, and the Middle East, though competition and strict standards remain obstacles.
• Domestic Push: There are growing calls within India to promote shrimp consumption domestically, positioning it as a healthy protein source and a buffer against export volatility.
• Inventory Management: Exporters are working to slowly reduce their frozen stockpiles, even if that means taking losses in the short term.

Farmers, meanwhile, are experimenting with survival strategies. Some are considering switching to other forms of aquaculture, such as fish, which face less export dependency. Others are seeking collective bargaining through local associations to press for government relief.

Outlook: A Supply Chain Under Strain

The tariff war has exposed how vulnerable India’s shrimp industry is to policy shocks in a single key market. Farmers, processors, and exporters are all entangled in the same struggle — one side cannot survive without the other.

For now, the sector is in damage-control mode: exporters are offloading inventories, farmers are hanging on through a poor season, and policymakers are being urged to step in with support. The real test will be whether India can successfully diversify away from overreliance on the U.S. market, and in the process, build a more resilient shrimp supply chain or successful to make a good deal with Trump administration.

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Speaking at a review meeting of the Animal Resource Development Department for the 2025–26 fiscal year, Minister Das emphasized that Tripura’s domestic fish production, supplemented by imports from Andhra Pradesh and West Bengal, is more than sufficient to meet current consumption needs.

“Even if fish imports from Bangladesh stop, there will be no issue. We are producing enough fish locally and also importing from West Bengal and Andhra Pradesh. This covers 100% of our demand,” said the minister.

The comments come amid a recent ban by the Indian central government on the import of six items from Bangladesh via land routes. Though fish was not directly listed, trade disruptions at the Akhaura land port in Brahmanbaria have affected seafood exports from Bangladesh to India’s northeastern states, including Tripura.

The minister also highlighted that Tripura has not been actively importing fish from Bangladesh, despite media reports citing suspended exports through Akhaura.

During the meeting, Das reviewed budget utilization and departmental performance for the past fiscal year and laid out priorities for achieving self-sufficiency in milk, eggs, meat, and animal healthcare under the Animal Resource Development (ARD) framework.

According to Das, 99% of the previous year’s budget was successfully utilized, and district-level meetings are already underway to implement new development strategies.

This statement from Tripura’s top fisheries official hints at a growing regional shift toward self-reliant aquaculture and livestock management, potentially signaling longer-term changes in cross-border seafood trade dynamics with Bangladesh.

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The introduction of closed mine-based fish farming in Rajnandgaon district has significantly increased the production of fish species like Pangasius and Tilapia. Under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), two closed mines have been converted into thriving aquaculture hubs at a cost of $0.8 million, producing approximately three tons of fish per cage. These fish are now ready to be supplied nationwide, strengthening fish markets and contributing to the blue economy.

This initiative has created jobs for over 150 individuals, with women earning $70-90 monthly. The government’s subsidy of 40–60% under PMMSY has further enabled fish farmers to adopt the advanced cage culture method, which not only ensures a healthy environment for fish rearing but also reduces the risk of infections. The technique has proven to save time and costs while substantially increasing production levels.

In a mine in Joratarai, 162 unit cages were installed at a cost of $0.54 million, demonstrating the model’s scalability and effectiveness. This effort has turned disused water bodies into centres of economic activity, improving livelihoods and optimising water resource use.

In 2023, Chattisgarh reported a fish production of 652,000 metric tons, a substantial increase from 591,000 metric tons the previous year. This remarkable achievement highlights the state’s growing influence as a leader in sustainable aquaculture, inspiring similar initiatives across the India.

By leveraging innovative practices, Chattisgarh is setting an example of how targeted investments in aquaculture can drive economic growth, environmental sustainability, and social development in rural areas.

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The Marine Products Export Development Authority (MPEDA) has called for urgent implementation of TED in fishing nets to address the ban and protect endangered Olive Ridley turtles. MPEDA’s Odisha chapter is spearheading efforts to encourage the adoption of this device in fishing trawl nets to prevent the deaths of Olive Ridley turtles and remove the U.S. ban.

Dr. Joice V. Thomas, Chief Executive of the Network for Fish Quality Management & Sustainable Fishing (NETFISH), explained that under Section 609 of the U.S. Public Law 101-162, shrimp can only be imported into the U.S. if the exporting nation ensures its shrimping practices do not adversely affect sea turtles. Currently, India has not been certified by the U.S. Department of State due to non-compliance with TED regulations, making it ineligible to export wild-caught shrimp to the U.S.

The ban has inflicted massive financial losses on India’s seafood sector, with annual losses estimated at Rs. 4,500 crore (USD 550 million). The Odisha MPEDA coordinator, Subhrakanta Mohapatra, emphasized the importance of implementing TED to mitigate these losses and protect both the shrimp industry and sea turtles. Mohapatra raised this issue at the State Level Stakeholders Workshop on TED Implementation, organized in collaboration with the Odisha Department of Fisheries.

TED is a critical device that allows turtles to escape fishing nets while still capturing shrimp. It significantly reduces the accidental capture of turtles by 97%, with only a 2% reduction in prawn catch. This device can play a crucial role in not only removing the U.S. shrimp export ban but also protecting endangered sea turtles along India’s coastlines.

Olive Ridley turtles, which nest along the Odisha coast, are highly protected under India’s Wildlife Protection Act, 1972. Their primary nesting areas, such as the Gahirmatha rookery in Kendrapara district, are globally renowned as the largest nesting sites for this species. However, the mortality rate of Olive Ridleys is alarmingly high due to trawling operations, making the use of TED vital for their conservation.

Despite a 1998 Orissa High Court ruling mandating TED in all trawlers, compliance remains low, exacerbating the threat to Olive Ridley turtles. Debananda Bhanja, Additional Director of the Odisha Fisheries Department, highlighted that turtles often perish after becoming entangled in fishing nets or being struck by trawler propellers. Strengthened enforcement of TED usage is critical to protecting this endangered species.

The continued ban on wild-caught shrimp exports to the U.S. underscores the importance of adhering to sustainable fishing practices. For India’s seafood industry to recover, timely adoption of TED and compliance with U.S. regulations are crucial. This will not only safeguard the livelihoods of shrimp farmers and traders but also ensure the protection of the fragile marine ecosystem along India’s coastlines.

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These reports revealed issues such as child labor, forced labor, and inhumane working conditions in Indian shrimp processing facilities, particularly in Andhra Pradesh. The Southern Shrimp Alliance (SSA), an organization representing shrimp producers in the U.S., played a key role in pushing for the inclusion of Indian shrimp on the DOL’s list. They cited the same reports as evidence of labor exploitation in the industry.

The shrimp processing plants in India are said to operate under extremely poor conditions, with workers facing significant hardships. ILAB’s report highlights instances of debt bondage, where workers are charged high job-placement fees that leave them trapped in financial servitude. Many workers are forced to live in employer-provided housing near the worksites, often located in remote areas, with security measures that include lock-ins and surveillance, restricting their freedom of movement.

In addition to the physical abuse and verbal harassment reported, workers are exposed to hazardous chemicals, endure long hours of standing, and face the risk of injury due to the lack of proper protective equipment. Housing conditions are described as overcrowded, unsanitary, and poorly maintained.

One of the more prominent revelations came from Josh Farinella, a former general manager of the shrimp processing company Choice Canning in Kerala, India. Farinella became a whistleblower after witnessing firsthand the poor conditions at the facility. He recounted instances of antibiotic-contaminated shrimp being shipped to the U.S. and employees being forced to stay at the facility against their will. Despite these allegations, Choice Canning has denied any wrongdoing, stating that they have passed social compliance audits and asserting that forced labor does not exist in India’s shrimp industry.

The addition of Indian shrimp to the ILAB’s list has significant implications for the U.S. shrimp market. The Southern Shrimp Alliance has urged all U.S. buyers to exercise due diligence when sourcing shrimp from India, potentially impacting the reputation and demand for Indian seafood in the global market.

India’s shrimp industry is a major player in global seafood exports, contributing billions to the country’s economy. However, the reports of labor abuses have put the industry under intense scrutiny. With shrimp being such a valuable export, this new designation could result in increased regulatory measures and stricter import controls by countries like the U.S., which prioritize ethical sourcing practices.

The case of Indian shrimp serves as a stark reminder of the human cost behind global food supply chains. As the world demands sustainable and ethical seafood production, it is essential for industries to adopt transparent practices that protect workers’ rights, improve working conditions, and ensure that forced labor and child labor are eradicated. Collaborative efforts between governments, companies, and consumers are crucial in building a seafood industry that values both human rights and environmental sustainability.

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A recent report, presented by the Marine Products Export Development Authority (MPEDA) in collaboration with the Central Marine Fisheries Research Institute and Central Institute of Fisheries Technology, highlighted the severe impact of this ban on the livelihoods of Indian fishermen. The U.S. law prohibits the import of wild caught shrimp from fisheries that negatively impact marine wildlife, particularly sea turtles in India.

To address this, India has developed two designs of Turtle Excluder Devices (TED) for trawl nets, meeting the technical standards of the U.S. National Oceanic and Atmospheric Administration (NOAA). These devices are intended to reduce turtle mortality by allowing them to escape from the nets. One of these designs has already been approved by NOAA, and field demonstrations are ongoing across maritime states to educate stakeholders about the importance of TEDs.

The report also stressed the need for India to establish a regulatory program focused on conserving marine mammals, such as whales, dolphins, and dugongs, in line with the U.S. Marine Mammal Protection Act (MMPA). Failing to comply with these regulations could jeopardize the export of all wild-caught marine products to the U.S.

Indian marine scientists have argued that traditional fishing practices in India already include methods to reduce interactions between marine mammals and fisheries, underscoring the cultural importance of protecting turtles within the Indian fishing community. However, further efforts are necessary to align with international conservation standards and restore access to the lucrative U.S. market.

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India has seen remarkable development in fish production, with output rising from 0.75 million MT in 1950–1951 to 16.25 million MT in 2021–2022. India’s entire fish production was dominated by marine fish production till 2000.

However, India’s inland fisheries have experienced a reversal as a result of the promotion and acceptance of scientific fish-raising and management techniques. Inland fisheries’ share of the nation’s overall fish output has nearly doubled over the previous four to five decades, rising from 36% in the mid-1980s to 70% in the most recent period.

Presently, India is the 3rd largest fish-producing and 2nd largest aquaculture nation in the world after China accounting for 8% of global production. 

Brackish/saline water aquaculture has also gained popularity in India. The brackish water shrimp farming industry has grown significantly during the last few decades. Brackish water aquaculture has enormous potential because the country possesses around 1.42 million hectares of brackish/saline land.

In the fiscal year 2022-23, India exported fish and fish products worth USD 8.09 billion. Frozen shrimp accounted for the majority of exports, earning USD 5.48 billion.

India also has abundant and diverse cold water resources, including significant indigenous fish germplasm and clean water with a variety of temperature regimes. As a result, the Himalayan states have a unique advantage in the Cold Water Fishery sector.

Recognizing the importance of fisheries and aquaculture in ensuring food security, nutrition, and livelihood, the Indian government has recently made significant investments in the industry, both financially and institutionally. The Fisheries Department is implementing several new projects to increase inland fish farming with public engagement.

Inland fisheries have enormous possibilities and promise for increasing production through effective fisheries management, technology infusion, and capacity building. In India, more than 30 million fishermen and farmers at the primary level, as well as many more throughout the fisheries value chain, rely on fisheries and aquaculture for a living and employment majority of whom are dependent on the inland fishery sector. Thus this sector is critical for various socially, economically, and nutritionally disadvantaged groups of people.

However, the sector confronts various obstacles. A few of the major issues are overexploitation, incomplete databases and catch data, uneven gender involvement, poor infrastructure, and weak governance structures. Furthermore, the inland fisheries sector is severely lacking temperature-controlled supply chain. Additionally, the marketing of fish and its associated goods is mostly uncontrolled and unregulated. 

To address these difficulties, a comprehensive strategy for managing inland fisheries is necessary, incorporating all important components such as fisheries resources, fish, and fishers. It is critical that the Indian government, scientists, fishery managers, fishermen, and other resource users should work together to ensure the long-term management of inland fisheries resources.

Jaber Bin Abdul Bari
Department of Oceanography, NSTU

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The surge in fish imports is attributed to various factors, including the need to meet specific consumer demands and the preference of certain groups, including foreign nationals residing in Bangladesh. Moreover, there’s a growing market demand for low-priced fish varieties, prompting an increase in imports.

Most of the fish imported in the country is marine fish. Last year 100K tons of fish imported, about 58K tons were marine fish. The marine fish include sardines, shad or gizzard shad fish, sourced from countries such as Myanmar, Oman, the United Arab Emirates, Thailand, Vietnam and even Uruguay.

However, India serves as the primary source of fish imports for Bangladesh, supplying a variety of species such as rui, katla, aair, boal, poa, kachki, baim, vetki, tuna etc. Furthermore, dried fish imports from India consist of kachki, chanda, loitta, and tengra.

Stakeholders say that Indian rui / rohu fish once held a monopoly in Bangladesh’s fish market a decade ago, but subsequently, rui fish from Myanmar dominated the market. However, due to recent unrest in Myanmar, the import of rui fish from India has resurged. The production of rui has also increased in Bangladesh by the time.

The majority of fish imported from India enters through the Benapole land port in Jashore, the Sona Masjid land port in Chapainawabganj and the Bhomra land port in Satkhira.

Among the companies that got permission for fish import, Freshco Distribution imported 20 tons of salmon from Australia, sent by Centennial Global Trade of Melbourne, Australia, to Dhaka’s Shahjalal International Airport. This company obtained approval for one tonne of salmon import in June and 30 tons in July of the previous year.

Additionally, Saat Tara Matsa Bebsayee in Pabna received permission to import 500 tons of dotted gizzard shad fish from Vietnam last July. Resembling hilsa fish, this variety is sent by sea to Chittagong port by Huy Phat Company.

SUBACO Bangladesh has approval to import 24.5 tonnes of Basa fish from Vietnam. Other imported fish include sardines and shad fish, often mistaken for hilsa, with retailers marketing them as such in the local market. A significant portion of imported catfish is sold under the name “bata” fish.

According to Sayed Md Alamgir, the director general of the Department of Fisheries, provisions for fish imports are outlined in the Fisheries and Fish Products (Inspection and Quality Control) Act, 2020. Despite this legal framework, a recent letter was forwarded to the Ministry of Fisheries and Animal Resources seeking guidance on granting approval for fish imports, highlighting the importance of policy decisions to prioritize the country’s interests.

The Department of Fisheries continues to authorize fish imports, despite challenges such as the ongoing dollar crisis and government efforts to discourage imports of various products. While precise data on recent foreign currency expenditure on fish imports is unavailable, historical data indicates significant spending on fish imports in previous fiscal years.

Bangladesh’s fish production has been steadily increasing, with the country contributing 11% to the world’s total freshwater fish production, according to the Food and Agriculture Organization of the United Nations. However, despite this increase in production, fish exports from Bangladesh have experienced a decline in recent years.

In the fiscal 2021-22, Bangladesh exported 74K tons of fish, valued at over US $473.3 million. However, in the following fiscal 2022-23, the export volume slightly decreased, with around 69.8K tons of fish and fish products exported, generating an income of US $436.6 million. About 64% of Bangladesh’s fish exports consist of shrimp.

Shyamal Das, managing director of MU Seafood Limited, notes that while Bangladesh exports fish, there’s limited value addition, primarily exporting frozen products. He highlights the potential for value addition in the sector, citing China’s practice of importing fish from Bangladesh, adding value to it, and then exporting it to Europe and America.

Bangladesh’s fish import landscape is evolving, driven by diverse consumer demands and market dynamics, despite the country’s significant contribution to global fish production. Efforts to enhance value addition in the sector could further bolster Bangladesh’s position in the global fish market.

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The Indian shrimp industry received an additional boost when it began farming the Vannamei shrimp. As a result, the shrimp sector contributes significantly to India’s entire seafood basket.

However, the Indian shrimp industry has taken a severe hit and lost its crown. India, formerly the world’s leading shrimp exporter, is now fighting to regain its prior status.

A variety of factors have contributed to this tremendous setback.

The epidemic dealt a catastrophic $1.5 billion hit to India’s shrimp industry. During 2020-21, shrimp exporters were drowning in excess stock due to an unexpected oversupply caused by supply chain snarls.

The industry’s troubles were exacerbated by decreasing appetites for shrimp as a result of lockdowns and eating restrictions. As a result, shrimp prices fell to the ground.

Although shrimp prices began to rise in FY24, they remain beneath pre-pandemic levels.

However, India’s export value is declining. While export volumes have not yet declined, the year-total export value in Q1-Q3 2023 fell to $3.7 billion, a 13% year-on-year decrease. This echoes the negative pricing trend that exporters have seen in the United States and China, India’s two main export destinations.

Traditionally, the United States is the biggest importer of shrimp from India. As of FY23, it contributed to 33% of total shrimp exports from India. However, the dependence on the United States marketplace has surprisingly backfired.

Due to the epidemic, shipping freight prices skyrocketed, resulting in a drop in export volume. At the same time, Ecuador benefited from its geographical closeness to Western markets, giving it a logistical advantage over its Asian competitors. 

As the United States began to negotiate trade agreements and lower tariffs with Ecuador, it signaled a trend toward diversifying its shrimp supplies and lessening its reliance on India. Furthermore, Ecuador’s competitive price mirrored that of India, resulting in a win-win situation for both the United States and Ecuador. The situation exacerbated when the US placed a 3.8% anti-dumping charge on select Indian shrimp.

India’s exports to the US, its largest market, fell between 2021 and 2022. But by 2023, they had steadied and grown by 1%. Furthermore, shipments to the EU fell by 12%, to 38,119 MT. Belgium and the Netherlands remained the EU’s major marketplaces for Indian shrimp.

While exports to Belgium increased (16% year on year), shipments to the Netherlands fell 15% year on year to 2021 levels. Exports to France, the EU’s third largest market, fell by a stunning 54%.

Furthermore, the rise in shrimp feed has contributed to the shrimp industry’s declining trajectory.

Shrimp feed contains a specific diet designed to ensure the life and growth of shrimp. It is made from three main ingredients: soybean meal, fishmeal, and wheat flour.

Over the last three years, the feed sector has seen price instability, notably as a result of a 40% spike in fishmeal costs owing to worldwide shortages. This increase has squeezed the purse strings of many farmers, reducing profit margins.

India’s shrimp sector is at a crossroads, trapped between opportunity and risk.  In a deliberate bid to boost the shrimp business, the Indian government is reducing customs taxes on shrimp feed from a high 15% to a more manageable 5%. Furthermore, by establishing an ambitious export target and taking prudent measures, the country may reclaim its lost place in the sector.

Jaber Bin Abdul Bari
Department of Oceanography, NSTU

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