MUMBAI: Shrimp exports are set to plunge by 15-18% this fiscal with the effective US tariffs rising to 58.26% (including the countervailing duty of 5.77% and anti-dumping duty of 2.49%) from August 27, leading to a 15-200 bps decline in profit margins, a report has warned.
The revenue of shrimp exporters, which was stagnant for the past four years, will decline 18-20% on-year this fiscal despite some cushion from a surge in shipments in the first quarter in anticipation of higher tariffs. In fiscal 2025, the country shipped out around $5 billion worth of shrimps, with the US accounting for around 48% of this, Crisil Ratings said Friday.
Lower revenue, coupled with the inability to pass on the tariff burden to customers, will erode the operating profit margin by 150-200 bps, the report said, based on an analysis of 63 shrimp exporters who account for 55% of the industry revenue, adding that the combination of lower revenue and subdued margins will weaken the debt protection metrics of players.
The US has long been a preferred destination for shrimp exports because of easy market access, higher growth prospects, better profit margins and consistent customer approvals. It continued to be a preferred destination despite anti-dumping and countervailing duties, and the recent reciprocal tariff of 10% in April 2025, as customers absorbed a portion of the tariff.