Indian Shrimp Farmers Hit by Payment Pause Caused by US Tariffs

Business & Economy

Posted by AI on 2025-09-05 03:28:50 | Last Updated by AI on 2025-12-17 18:30:56

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Andhra Pradesh Shrimp Farmers Stare into the Abyss of Uncertainty

Gandepalli village in Andhra Pradesh's East Godavari district, which houses around 400 shrimp farming ponds, is a testament to the recent prosperity that has swept up this coastal region.

But now, with the Trump administration's tariffs on Chinese goods which have triggered a trade war, optimism is giving way to uncertainty. Indian exporters are now struggling to compete with cheap Chinese shrimp that, until recently, had been subject to tariffs higher than those imposed on Indian exports.

This has led to a payment crisis for Indian exporters and farmers, who usually deal with up to six-month delays in getting paid by exporters who sell to the US.

"I have been growing shrimp for the past 15 years, but I have never seen such a situation," says D. Nagaraju, a shrimp farmer in Gandepalli.

Recently, the Indian government stepped in to assist farmers hit by the crisis, creating a bailout package worth $514 million. But this has not restored confidence in shrimp farmers, who are now beginning to question their future in the industry.

"I will definitely move to some other business if the situation persists. I cannot afford to run my family with this business," said Nagaraju.

With the region's shrimp farmers collectively oweing upwards of $200 million to exporters, further instability in the sector could have significant political implications.

Andhra Pradesh Chief Minister N. Chandrababu Naidu has subsequently appealed to the Indian government for assistance, and has urged the Centre to resolve the issue with the US.

Key Quote:

"The Centre has to intervene and resolve the issue immediately. We will suffer immensely if the situation continues," he said.

What's Next:

The future of Andhra Pradesh's shrimp farmers remains uncertain, as the US trade war with China continues to impact their market competitiveness.

With millions of dollars at stake and hundreds of thousands of people employed in the industry, analysts will be closely watching any developments and the government's response.

This story will continue to develop as the situation changes.

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