Naidu Highlights Rs 25,000 Crore Loss from US Tariffs on Shrimp Exports, Requests Central Funds for Andhra Pradesh's Aqua Farmers and Exporters

Andhra Pradesh Chief Minister N Chandrababu Naidu met Union Finance Minister Nirmala Sitharaman in New Delhi to address the crippling impact of recent US tariffs on the state's aquaculture sector.

The meeting, held on September 30, 2025, focused on securing central government support for an industry that has suffered massive losses, with Naidu emphasising the need for immediate financial aid to safeguard livelihoods.

Naidu highlighted how the US tariffs on Indian shrimp exports are reported as 50% or higher (up to 59. 72% including additional duties) have led to a staggering Rs 25,000 crore loss for Andhra Pradesh's aqua farmers and exporters.

This sector, a vital growth engine for the state, has seen widespread order cancellations and reduced market access. The CM urged the Centre to intervene by providing ₹10,000 crore under the Special Assistance to States for Capital Investment (SASCI) scheme, along with revenue deficit compensation.

He stressed that these measures are crucial to mitigate the economic fallout, particularly as the state grapples with limited financial resources post-bifurcation.

The tariffs stem from broader US-India trade tensions exacerbated by events like Operation Sindoor, which caused relations to nosedive earlier in 2025.

Although ties recovered slightly following positive tweets between Prime Minister Narendra Modi and US President Donald Trump in mid-2025, persistent issues over trade imbalances and India's purchase of Russian oil continue to loom large.

Naidu pointed out that Andhra Pradesh, India's leading shrimp exporter, bears the brunt of these geopolitical strains, with farmers facing distress due to falling prices and halted shipments.

During the discussions, Naidu proposed policy interventions such as market diversification and inclusion of shrimp in US tariff exemption lists. He also sought assistance for tobacco procurement, another affected area.

The state government aims to expand aquaculture to 10 lakh acres by 2029-30, leveraging technology for better yields. Meanwhile, Agriculture Minister K Atchannaidu described the tariff impact as temporary, assuring farmers of ongoing efforts to resolve the crisis through a dedicated panel.

The meeting is part of Naidu's broader push for central support, including infrastructure projects and welfare schemes. The aquaculture sector employs lakhs in coastal districts, and its downturn threatens social stability. Farmers have voiced concerns at roundtable meetings, like the one on August 11, 2025, discussing Trump's proposed tariffs' repercussions.

With US markets accounting for a significant portion of exports, the state is exploring alternatives in Europe and Asia. While Modi-Trump exchanges have eased some tensions, unresolved disputes over tariffs and oil imports could prolong the crisis.