Amaravati, Feb 3 (NationPress) The Agriculture Minister of Andhra Pradesh, Kinjarapu Atchannaidu, expressed his enthusiasm over the recent decision by the US government to lower tariffs on Indian goods. He emphasized that this change will greatly benefit the state's seafood exporters, particularly in the aquaculture industry.

The reduction in tariffs from 25% to 18% as part of the India-US trade agreement is expected to be a significant advantage for Andhra Pradesh, recognized as a leader in aquaculture. This adjustment is anticipated to enhance income stability and create more job opportunities for both farmers and fishermen.

Atchannaidu is optimistic that the decline in exports, which had been observed in recent months due to elevated tariffs, will reverse, thus improving the competitiveness of Indian products in the American market.

It is anticipated that seafood exports, particularly frozen shrimp, could rise between 10% and 15%, while profit margins within the processing sector are likely to see an improvement.

Previously, punitive tariffs, alongside the existing 25% tariff, imposed a hefty total tariff burden of 50-58%. Consequently, India's seafood exports to the US dropped approximately 15% in volume to 2.01 lakh tonnes and 6.3% in value to $1.72 billion during the April-November 2025 period.

The frozen shrimp, as a primary seafood export to the US, was notably impacted by these tariffs.

With the tariff now reduced to 18%, the competitiveness of Indian seafood products in the US market is set to rise significantly. This should facilitate the resumption of halted export orders and improve conditions for the release of goods currently held in warehouses.

Experts predict that seafood exports to the US may increase by 10% to 15% in the forthcoming months, potentially reaching pre-tariff levels by the second half of 2025-26.

This development is also poised to enhance profit margins in the seafood processing sector, bringing processor margins, which had fallen to 5-5.5%% during the high tariff phase, back to 7-8%%. Atchannaidu also highlighted that the duty concessions granted on inputs necessary for seafood processing in the Union Budget 2026 will further bolster this sector.

In addition to the anticipated recovery in the US market, Indian seafood exports to non-US markets such as the European Union, China, Vietnam, Russia, and the United Kingdom are continuing at a steady pace.

He pointed out that the share of non-US markets in shrimp exports is expected to reach about 57% by early 2025–26, indicating successful market diversification. He believes this tariff reduction will greatly benefit Andhra Pradesh, a frontrunner in seafood production within the country.

With the resurgence of exports, there will be an increase in income stability for farmers and fishermen in the state's fisheries and aquaculture sectors, along with better employment opportunities and Gross Value Added (GVA).

According to estimates from MPEDA, total seafood exports from India are projected to reach 14–15 lakh tonnes in 2025–26.