India may cut duties on US shrimp imports
NEW DELHI
:
India may lower duties on shrimp imports to support reciprocal trade alignment in its trade agreement with the US, according to two people close to the discussions.
The commerce ministry is closely monitoring the US Department of Commerce's actions on countervailing duty (CVD) and anti-dumping duty (ADD) on shrimp imports from India, the officials said on the condition of anonymity.
India is keeping a 'close watch" on these developments and may consider recalibrating its own duties on shrimp imports if the US undertakes a revision, especially as the two nations work to resolve trade irritants and harmonize tariff frameworks under the Bilateral Trade Agreement (BTA), the first official said.
Also Read: Mint Exclusive: India-US trade deal before 8 July, talks next week
Such a move, the second official suggested, would demonstrate India's commitment to fair trade practices and its willingness to align with a key trading partner, provided domestic interests, particularly those of the shrimp farming and processing industry, are safeguarded.
Any adjustment on India's part would also take into account global price trends and the competitive landscape in key markets like the US, Japan, and the EU.
However, if the deal is signed in time, these duties will be recalibrated according to the mutually agreed-upon terms.
Also Read: India, US lay foundation for trade give-and-take
Queries sent to the commerce ministry remained unanswered until press time.
India's seafood exports
Shrimp is one of India's top seafood exports, with the US being its largest market. At present, Indian shrimp exports to the US face an effective customs duty of 17.7%, including 5.77% CVD and 1.8% ADD, and a 10% baseline tariff imposed by the US on 2 April.
In exchange, India levies a 30% duty on US-origin Vannamei shrimp, also known as Pacific white shrimp.
Competing countries, on the other hand, face significantly higher duties.
For instance, Ecuador is subject to a CVD of 7.55%, while Vietnam faces a CVD of 2.84%. Although Vietnam's CVD is lower than India's, it is now also facing a preliminary anti-dumping duty of 35%, imposed in June 2025. Similarly, Thailand's CP Foods (Charoen Pokphand Foods PCL), one of the world's largest producers of feed and shrimp, has been hit with a preliminary ADD of 57.6%.
In 2024-25, India exported marine products worth over $6 billion, with frozen shrimp accounting for a major share, according to data from the Marine Products Export Development Authority (MPEDA).
In comparison, India imported seafood worth $13.76 million from the US in 2023-24, according to the commerce ministry.
Also Read: Will India press for an early harvest in trade talks with US?
'The lowering of tariffs, especially CVD and ADD, would give a fillip to Indian shrimp exports. We hope the government will take up the issue during bilateral talks," said Pawan Kumar G., president, Seafood Exporters Association of India.
Window of opportunity
With the BTA negotiations entering a crucial phase, trade analysts see this as an opportunity for both sides to make coordinated changes that reduce trade friction.
The 10% base tariff and the proposed additional 16% reciprocal tariff are expected to severely impact India's seafood exports to the US, as these products account for nearly a third of India's global seafood exports.
India is projected to suffer a 20.2% decline, amounting to a $404.3 million loss, especially as Canadian seafood continues to enjoy duty-free access under the USMCA trade pact, said a report by the Global Trade Research Initiative (GTRI).
Processed meat and fish exports are also expected to be hit hard, with estimated losses of $83.1 million, or 14.2%, as tariffs rise from 2.6% to 31.2%, the report added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
33 minutes ago
- Time of India
Neetu Yoshi IPO opens June 27, price band fixed at Rs 71-75. Check details
The initial public offering (IPO) of metallurgical engineering company Neetu Yoshi will be available for public bidding from Friday, June 27 and the company has fixed a price band of Rs 71-75 for this issue. The company aims to raise Rs 77.04 crore (at the upper end of the price band), with its shares proposed to be listed on the BSE SME platform. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The World's Most Stunning Blue Flag Beaches Ranked: Top 25 List! Read More Here are the key details you need to know: Neetu Yoshi IPO size The issue size is 1,02,72,000 equity shares at a face value of Rs 5 each with a price band of Rs 71 - Rs 75 per Share. As part of the equity share allocation structure, up to 29,20,000 equity shares have been reserved for the anchor investor portion. The Qualified Institutional Buyer (QIB) category may be allocated up to 19,52,000 equity shares. Live Events A minimum of 14,65,600 equity shares will be allotted to Non-Institutional Investors (NIIs), while retail individual investors (RIIs) will receive not less than 34,14,400 equity shares. Additionally, up to 5,20,000 equity shares have been earmarked for the market maker category. Net proceeds from the Neetu Yoshi IPO The net proceeds from the IPO will be utilized for the setting up of a new manufacturing facility and for general corporate purposes. Book running lead managers of Neetu Yoshi IPO The Book Running Lead Manager to the Issue is Horizon Management Private Limited, and the Registrar to the Issue is Skyline Financial Services Private Limited. About the company Neetu Yoshi Ltd is a metallurgical engineering company manufacturing critical safety spares for railways. The products include mild steel, spheroidal graphite iron, cast iron, and manganese steel (0.2 kg to 500 kg). The Company is an RDSO-certified vendor supplying 25+ critical safety spare parts for Indian Railways, specializing in braking solutions, suspensions, propulsion aids and coupling attachments. The company has established a Class 'A' RDSO-certified manufacturing facility in Bhagwanpur, Uttarakhand, spanning 7,173 sq. meters with 8,087 MTPA capacity. With advanced infrastructure, in-house testing, and a strategic location, the company delivers precision-engineered, high-quality metallurgical products at competitive prices. As a late mover, Neetu Yoshi leverages advanced technology, CNC precision, and cost-efficient processes to gain a competitive edge while developing next-gen railway solutions. Neetu Yoshi financial performance In FY24, the company achieved a revenue of Rs 4,733.42 lakh, EBITDA of Rs 1,718.57 lakh, and a PAT of Rs 1,257.72 lakh. For the nine-month period ended December 31, 2024, the company achieved a revenue of Rs 5,136.08 lakh, EBITDA of Rs 1,684.89 lakh, and a PAT of Rs 1,199.24 lakh.
Mint
33 minutes ago
- Mint
FPIs turn sellers in June after 2-month buying streak. Will Iran-Israel tensions trigger more outflows?
Stock market today: Rising tensions in the Middle East appear to have caught the attention of overseas investors, who turned bearish on the Indian stock market in June after two consecutive months of net purchases. FPIs have alternated between buying and selling so far this month but have largely stayed on the sidelines in most sessions, withdrawing ₹ 4,192 crore through exchanges, according to NSDL data. The escalating conflict between Iran and Israel — with the U.S. now officially entering the war by launching attacks on Iran alongside Israel — has brought fresh concerns to Indian stock market, impacting the sentiment of overseas investors, especially as Indian stock market are already viewed as expensive compared to other Asian peers. Despite continued FPI selling, the Indian stock market has remained resilient in June so far, with both front-line indices gaining nearly 1%, thanks to strong support from domestic institutional investors (DIIs), primarily driven by mutual funds. DIIs acquired shares worth over ₹ 59,000 crore in June so far, following net purchases of ₹ 66,194 crore in May. Mutual funds alone contributed more than ₹ 35,900 crore in June, compared to ₹ 53,260 crore in the previous month. Although FPI inflows have fluctuated over the past six months, strong domestic buying has helped sustain market momentum — even amid heightened geopolitical tensions, global trade war concerns, and rich valuations. FPIs turned into net buyers in April by infusing ₹ 4,223 crore, according to the depositories data. Before this, foreign portfolio investors (FPIs) had pulled out ₹ 3,973 crore in March, ₹ 34,574 crore in February, and a substantial ₹ 78,027 crore in January. Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, "After a big buy figure of ₹ 19,860 crore in May, FIIs turned less confident in June, with bouts of selling and buying. Net FII activity in June till the 20th is a sell figure of ₹ 4,192 crore (NSDL)." He added that in the first half of June, FIIs were sellers in FMCG, power, consumer durables, and IT sectors, while they were buyers in financials, chemicals, capital goods, and real estate. 'The buying reflects fair valuations and good prospects in those segments, while the selling points to relatively high valuations and diminished outlook in others,' he explained. FIIs have also remained net sellers in the debt market. 'The yield differential between U.S. and Indian sovereign bonds is at a historic low of around 2%. Given the currency risk, investing in Indian bonds doesn't make sense currently, and this trend of FPI selling in bonds is likely to continue,' Dr. Vijayakumar noted. Vipul Bhowar, Senior Director – Listed Investments at Waterfield Advisors, stated that the trend of Foreign Portfolio Investment (FPI) reversed in April and strengthened considerably in May, marked by positive inflows. The inflows in May were the highest in eight months, indicating a resurgence of interest from foreign investors in Indian markets. However, he noted that geopolitical tensions, including the ongoing conflict between Israel and Iran, along with broader global uncertainties, have led to a cautiously optimistic approach in June. He added that improving domestic fundamentals and a favorable long-term growth outlook suggest that, if global conditions stabilize, India could witness more sustained and stable FPI inflows in the future. Vijayakumar, echoed this view, stating that global uncertainty dominated by geopolitics — particularly the war in West Asia — will continue to shape FPI activity going forward. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Time of India
33 minutes ago
- Time of India
Zerodha CEO Nithin Kamath on F&O mess: Indian markets look sane when compared to US
The CEO and co-founder of Zerodha Nithin Kamath , in a post on his X (formerly Twitter) handle today, noted that while there has been considerable discussion around India's derivatives turnover, the country's market still accounts for only about 25% of U.S. premiums, drawing attention to the scale and speculative nature of the U.S. financial markets. 'Despite all the discussions about the Indian derivative turnover, we are barely 25% of US premiums,' Kamath noted. Despite all the discussions about the Indian derivative turnover, we are barely 25% of US premiums. Btw, these numbers don't give you a full picture of the crazy levels of gambling and speculation in the US. Outside the exchange-traded derivatives, people can gamble on leveraged… — Nithin Kamath (@Nithin0dha) June 23, 2025 In his post, Kamath emphasized that this figure alone doesn't capture the full extent of speculative activity in the U.S. 'These numbers don't give you a full picture of the crazy levels of gambling and speculation in the US,' he wrote. He added that beyond exchange-traded derivatives, U.S. investors engage in a wide range of high-risk financial bets, including leveraged ETFs , crypto assets, prediction markets like Polymarket, sports betting, and more 'When you look at what's happening in the US and then look at India, our markets look so sane,' Kamath commented, contrasting the relative structure of Indian markets with what he described as the "crazy" breadth of speculative options available in the U.S. Reacting to Kamath's post, Hemang Jani, Founder and Director of Finazenn, offered further context on the scale of India's derivatives market. In a comment under the thread, Jani pointed out that India's market cap is $4.8 trillion, compared to the U.S. market cap of $55 trillion. Given this gap, he said, India's presence at around 25% of U.S. premium turnover is not small. Jani also highlighted the significant base of active participants in India's F&O segment, stating that India has approximately 85–90 lakh active derivatives traders while the U.S. has around 2.1 million.
