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Shorelines Under Strain: India’s Coastal States Scramble To Blunt Washington’s Tariff Shock

As India’s shrimp powerhouse, Andhra Pradesh had the most to lose—and it responded the quickest to the tariff blow

Fishermen sail to the sea at night on August 13, 2025 in Kochi, India. Getty
Summary
  • Punitive US duties on shrimp exports have jolted India’s shoreline economies, threatening millions of livelihoods.

  • States from Andhra to Kerala rush with patchwork relief—from advisory panels to subsidies—but anxieties deepen.

  • Exporters seek urgent credit lifelines, while workers at the bottom—especially women in peeling sheds—remain unprotected.

When Washington slapped punitive duties on Indian marine exports this summer, it didn’t just hit exporters’ balance sheets. It rattled an entire ecosystem—shrimp ponds in Andhra, hatcheries in Tamil Nadu, peeling sheds in Kerala, and fishing harbours across the coast. Millions who depend on aquaculture and marine processing suddenly found their jobs and incomes in peril.

“This is not just about trade flows; it’s about the livelihoods of coastal families,” says Gandhi Varadaraj, general manager of a seafood export firm in Nagercoil, Tamil Nadu.

The tariff shock has forced a frantic policy scramble. From state capitals to Delhi, emergency advisory panels, credit-relief pleas, diversification drives, and hurried coordination meetings are underway. Whether this patchwork holds is now the question.

Andhra Pradesh: moving first, moving fast

As India’s shrimp powerhouse, Andhra Pradesh had the most to lose—and it responded the quickest. The state established a 16-member aquaculture advisory committee comprising exporters, hatcheries, and officials to develop short- and medium-term solutions. It’s brief: learn from competitors, like Ecuador, stabilise procurement, and scout for new buyers.

Andhra’s Fisheries Minister, K. Venkata Nageswara Rao, stated in a press release that we cannot abandon farmers and processors in the face of sudden shifts in the global market.

Farmers welcomed the speed, but anxieties remain. Shrimp farmers in the Godavari belt say their ponds are full, but buyers are vanishing. They demand stable procurement and immediate credit.

Delhi’s Pitch: diversify or die

At the national level, the Union Fisheries Ministry convened a high-profile meeting with seafood exporters. Alongside MPEDA, it pushed for accelerated market access in the EU, Japan, Western Asia, South Korea, Russia, and China.

“We cannot remain hostage to one market. The US accounted for nearly 40 per cent of our shrimp exports, and that overdependence has now hurt us,” Union Minister of State for  Fisheries George Kurian told exporters.  Marine Products Export Development Authority (MPEDA) chairperson D. V. Swamy added, “Diversification is no longer optional—it is survival.”

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The Credit Lifeline Debate

Exporters, however, argue that the rhetoric of diversification means little without immediate liquidity. “If there is no working capital, there is no production to diversify,” they warn. Processors are demanding soft loans, interest subvention, and extended moratoria. Without bridge finance, they say, they cannot pay suppliers or keep workers on payroll.

Other States: varied strategies, same anxiety

Beyond Andhra, states are improvising fixes. Tamil Nadu is leaning on a value-addition roadmap to deepen processing and tap diverse price points abroad. The fisheries department reports that they are preparing processors to advance in the supply chain by offering ready-to-cook and ready-to-eat products.

Odisha has sought emergency talks for processors in Balasore and Bhadrak, where order cancellations are mounting. Kerala, meanwhile, is considering diesel subsidies and alternative employment opportunities for women peelers. “It is the women in sheds who suffer first when exports dip,” remarked Kerala Fisheries Minister Saji Cheriyan.

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MPEDA’s Big Bet—and its Limits

MPEDA has taken the lead in scouting new markets, pushing certifications, and accelerating trade missions. But even its officials admit this is a slow pivot. Buyers require traceability, compliance, and cold-chain security, which are not immediately achievable.

Missing in Action: worker protections

While governments race to stabilise exporters, workers at the bottom of the chain—mostly women in peeling sheds—remain largely out of policy view.

“They are paid by the kilo, and now they have no shrimp to peel,” unions point out. Workers’ collectives are demanding cash transfers, wage support, and food aid. NGOs have stepped in with rations, but state rollouts remain patchy.

What Can Work Now—and What Can’t

Short-term fixes are limited: soft credit, temporary market diversion to the EU or West Asia, and state procurement may prevent mass bankruptcies. Medium-term survival lies in value addition, product diversification, and a reoriented export strategy. Socially, without cash support and job guarantees, the tariff shock risks mutating into a humanitarian crisis.

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A Test of Federal Coordination

The tariff shock is more than an economic setback—it is a test of India’s federal response system. Is it possible for Andhra’s advisory panel, Tamil Nadu’s processing initiatives, Odisha’s urgent appeals, and Delhi’s diversification strategy to align swiftly?

“If relief does not reach fast, ponds will be abandoned and workers will migrate. That will take years to repair,” warn exporters in Andhra Pradesh.

For now, millions on the coast wait anxiously—for markets to recover, for policies to deliver, and above all, for pay packets to return.

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