50% tax imposition impact: Seafood exports hit hard in Thoothukudi

CHENNAI: Seafood exports through Thoothukudi VOC Port have taken a severe hit following the sudden 50% tariff imposed by the United States on Indian products.

In 2023-24 alone, seafood worth Rs 3,214 crore amounting to 73,822 tonnes was exported through containers from Thoothukudi.

While exports of processed shrimp to China and Japan had already declined between January and April this year, exporters had managed to offset losses with increased shipments to the US

However, the steep US tariff has now dealt a major blow. Tamil Nadu has around 25 companies engaged in seafood exports to America, of which 15 are based in Thoothukudi district. On average, about 20 containers of seafood are shipped monthly from here to the US but exporters say the new duty has slashed volumes drastically, said a Daily Thanthi report.

Tamil Nadu accounts for nearly 30–40% of India’s seafood exports. With the US tariff in place, shipments have fallen by 40–50%. Buyers in the American market have begun reducing orders due to rising costs, leaving exporters struggling with unsold stock.

Since seafood cannot be stored for long periods, companies warn that if the situation continues, many firms will face heavy financial losses. Exporters have urged the Union government to intervene and take appropriate measures to safeguard the industry.