Donald Trump’s tariffs hit Odisha’s shrimp farming hard

Donald Trump administration’s tariffs have dealt a direct blow to Odisha’s shrimp farming sector. Stretching from Ganjam to Balasore, Odisha’s long coastline has been a hub for shrimp cultivation worth hundreds of crores. But the recent 50% tariff imposed by the US has shaken the industry, leaving farmers and traders struggling.

The steep tariff, first 25% and then another 25%, has triggered a price crash, with farmers now incurring losses of nearly Rs 20,000 per ton. In areas like Konark’s coastal belt, the price of shrimp has dropped by Rs 20–30 per kilo almost overnight.

Odisha, with over 500 km of coastline dotted with thousands of shrimp farms, is among the worst-affected regions in India. The heavy tariff has severely hit the seafood trade across the country, but its impact is most visible in Odisha, where shrimp farmers are bearing the brunt of sudden losses and dwindling returns.

It’s not just the shrimp trade alone; hundreds of families directly and indirectly linked to the business have been severely impacted. Every year, India exports millions of quintals of seafood such as fish, shrimp, and crab to foreign markets. A major share of this comes from Odisha, with shrimp leading the way.

"We have been engaged in traditional shrimp farming for the last few generations. Donald Trump’s tariffs have affected us both directly and indirectly. The price of shrimp has dropped by Rs 20 per kilo," rued Khirod Biswal, a shrimp farmer from Konark.

"We, the farmers, want the earlier rate and want to live in peace. I request the government to take necessary steps so that shrimp farming will not vanish from Odisha," said Jitendra Nayak, another shrimp farmer from Konark.

Shrimp farming, both in saline and freshwater bodies of Odisha, is in high demand in American restaurants. Various Indian companies conduct shrimp trade worth nearly Rs 22,000 crore annually with the US.

Earlier, seafood imports to the US faced a duty of only eight percent. However, with the newly imposed 50 percent tariff, the overall tax burden will now rise by 58 percent. In comparison, Ecuador and Indonesia, also leading shrimp exporters, face tariffs of just 10 percent and 20 percent, respectively.

This sharp rise is likely to make Indian shrimp more expensive in the American market, triggering fears of a decline in demand. Consequently, Odisha’s shrimp farmers are now staring at an uncertain future.

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"Had there been one duty for all the countries, it would not have caused any problems. Indonesia has 19 per cent duty, Vietnam has 20 per cent duty, and our biggest competitor, Ecuador, has 10 per cent duty. Under the circumstances, America will reduce the amount of imports from us," said industrialist Tara Ranjan Patnaik.

Shrimp farming in the state requires massive investment in pond construction, cultivation, and export logistics. If the high US tariffs continue for months, it may severely damage not only the shrimp trade but the entire seafood export industry of India.