India’s seafood exports are stuck on a raft of uncertainty

Published on April 15, 2025 | Category: Trade & Economy | Author: Blue Horizon India

Introduction: Navigating Troubled Waters

India’s seafood export sector, once hailed as a quiet success story of agro-industrial growth, is currently navigating turbulent waters. For decades, India has ranked among the top global exporters of seafood, especially shrimp, sending tonnes of frozen delights to markets like the US, China, Japan, and the European Union. However, a range of recent developments—from tightening trade restrictions and global inflation to rising domestic production costs and climate change—have thrown the industry into a state of flux. Once a billion-dollar contributor to India’s foreign exchange, the sector is now facing an uncertain future. Stakeholders, including seafood farmers, processors, exporters, and policy makers, are struggling to stay afloat as international demand fluctuates, prices tumble, and regulatory burdens increase. This blog explores the challenges, stakeholder concerns, current statistics, and what lies ahead for India’s troubled seafood export sector.

Slogan: “From coastal promise to policy puzzle — India’s seafood sector needs urgent attention.”

India’s Global Seafood Footprint: A Success Built on Shrimp

India has long been a leader in the global seafood export market, particularly when it comes to aquaculture shrimp. According to the Marine Products Export Development Authority (MPEDA), India exported over 17 lakh tonnes of seafood worth approximately USD 8.1 billion in FY 2022–23, with shrimp accounting for over 70% of total earnings. Key destinations include the United States (which alone accounts for over 30% of India’s seafood exports), China, Vietnam, and the European Union. Indian whiteleg shrimp (Litopenaeus vannamei) is especially in demand for its competitive pricing and quality. States like Andhra Pradesh, Odisha, Gujarat, and West Bengal are hubs of aquaculture farming, providing millions of jobs and contributing substantially to coastal economies.

Yet, this long-standing success is now under threat. Exporters are reporting declining margins, logistical hurdles, and trade uncertainties that make long-term planning difficult. Shrimp farmers are hit hard by increased feed costs, labor shortages, and disease outbreaks, while international buyers are reducing their purchase volumes due to inflation and oversupply from other countries like Ecuador and Vietnam. What was once seen as a sunrise sector is now stuck in cloudy waters.

Table: India’s Major Seafood Export Markets (FY 2022–23)

Challenges Weighing Down the Sector

The seafood export industry is grappling with a multitude of challenges. At the forefront is global inflation, which has dampened seafood consumption in key markets. The US, facing inflation-driven recessionary fears, has curtailed its imports. Europe’s demand has also declined due to inflation and stricter food safety regulations. Simultaneously, China continues to apply sudden import restrictions citing quality and biosecurity concerns, which has disrupted supply chains and added unpredictability.

Another major issue is the increased competition from countries like Ecuador and Vietnam, which have ramped up their shrimp production and are offering lower prices in international markets. Indian exporters, on the other hand, are suffering from rising production costs. Shrimp feed has become costlier, and erratic monsoon patterns are impacting aquaculture productivity. Disease outbreaks such as white spot syndrome and early mortality syndrome (EMS) further compound losses. The lack of adequate cold chain infrastructure and port inefficiencies adds to the woes.

“Indian seafood exporters are squeezed between rising costs and falling international prices. It’s a double-edged sword.” – Rajiv Ranjan, MPEDA Consultant

Policy Uncertainty and Regulatory Hurdles

Government policies have not been able to keep pace with the dynamic nature of global seafood markets. While there have been incentives such as the Transport and Marketing Assistance (TMA) scheme for agri-products, many stakeholders feel they fall short of addressing the deep-rooted problems. Exporters complain of delays in reimbursement, a lack of clarity in export documentation, and inconsistent inspection protocols that lead to shipment rejections. Moreover, there’s a growing pushback from Western countries on antibiotic residues in Indian seafood—highlighting the need for a robust traceability and certification system.

India’s Free Trade Agreements (FTAs) have also failed to offer much-needed tariff relief. Unlike Ecuador, which enjoys duty-free access to the US under the Generalized System of Preferences (GSP), Indian products face import duties. Negotiations for FTAs with the EU and UK are ongoing, but time is of the essence. A national seafood export strategy that aligns trade policy with ground realities is urgently needed to revive stakeholder confidence.

Chart: Key Regulatory & Cost Barriers Faced by Indian Seafood Exporters

The Human Cost: Coastal Livelihoods in Crisis

Beyond trade numbers, the real impact is being felt in the coastal regions of India, where thousands of families depend on aquaculture for survival. Farmers in Andhra Pradesh and Odisha report a 30–40% reduction in net income due to falling shrimp prices. Many are unable to repay loans taken for pond infrastructure, seed, or feed. Laborers in processing plants are being laid off as export volumes decline, creating socio-economic distress in fishing villages.

Women, who constitute a significant portion of the seafood processing workforce, are particularly vulnerable. With export houses running at reduced capacity, job losses are rising, and seasonal employment is drying up. The domino effect is visible—school dropouts, migration to cities for work, and heightened indebtedness. Without policy interventions to stabilize the sector, the human cost will only rise further, undermining years of progress in rural development and gender inclusion.

“Our earnings have halved this season. Feed is expensive, buyers are few, and prices are falling. We feel abandoned.” – Lakshmi, shrimp farmer in Srikakulam, Andhra Pradesh

What Needs to Be Done: Policy Recommendations

Reviving the seafood export sector requires a coordinated policy approach that balances international diplomacy, domestic support, and technological upgrade. Some key suggestions include:

• Expedite Free Trade Agreements (FTAs) with tariff concessions for Indian seafood.
• Increase subsidy for shrimp feed and disease control measures.
• Modernize cold chain and port infrastructure in coastal states.
• Implement digital traceability systems for quality assurance and international compliance.
• Ensure quicker and transparent disbursement of incentives like TMA.
• Support women-led cooperatives in seafood processing through credit and skilling.

A National Mission on Aquaculture Export Promotion could be the way forward—bringing together MPEDA, NFDB, state fisheries departments, and exporters under one coordinated body to push reforms, investments, and innovation in a time-bound manner.

FAQs: India’s Seafood Export Crisis Explained

Q1: Why are India’s seafood exports declining?

A: Due to rising input costs, global inflation, import restrictions from major buyers, increased competition, and poor infrastructure.

Q2: Which seafood item contributes the most to exports?

A: Farmed shrimp (whiteleg shrimp) contributes over 70% to India’s total seafood export revenue.

Q3: What are the biggest markets for Indian seafood?

A: United States, China, European Union, Vietnam, and Japan.

Q4: What support do seafood exporters want?

A: Faster policy support, better infrastructure, feed subsidies, FTAs with duty relief, and quality compliance systems.

Q5: How does this impact ordinary citizens?

A: Job losses, reduced rural income, debt burdens in coastal communities, and slower economic growth in seafood-dependent regions.

Conclusion: The Tide Must Turn

The crisis in India’s seafood export sector is a wake-up call. What was once a high-performing, employment-generating, foreign-exchange-earning sector is now in need of revival and reform. While global market dynamics are beyond direct control, much can be done at home to improve competitiveness, support producers, and ensure regulatory compliance. Policymakers must listen to the cries from the coast—where livelihoods are at stake, and a legacy of growth is under threat. The time for timely intervention is now, or the sector risks being marooned in uncertainty for years to come.

Slogan: “Rescue the coast, revive the economy—India’s seafood story must swim, not sink.”