42 MARCH 2026 • WORLD AQUACULTURE • WWW.WAS.ORG shifts. Ultimately, the peeling sheds where shrimp are manually peeled had to send their daily-wage workers home without any notice. It is crucial to note that over 90% of these workers are women (The Indian Express, 2025). This reliance on a vulnerable workforce is a national pattern. For instance, in Kerala, a south-western state of India, surveys show that nearly 60% of the fisheries workforce are migrants, and about half are in post-harvest jobs (Times of India, 2025). These are the very roles that vanish first when exports slow. In India, almost all processed shrimp is produced for export, not domestic consumption. The Vannamei Paradox According to the Marine Products Export Development Authority (MPEDA), over 95% of India’s farmed vannamei shrimp is exported, mainly to the US, China, and the EU, while less than 5% enters the domestic market. The economics explain this heavy export reliance. Feed alone makes up 55–60% of production costs, and India’s feed prices are among the highest in Asia. Electricity for aeration and pumping adds another 10–15%. As a result, the average production cost in India hovers around ₹240–260 per kg (approximately $2.90–3.15), leaving farmers unable to sell profitably at lower domestic prices. Consequently, in this high-cost system, farmers are forced to chase high-value export markets, while shrimp remains a luxury for most Indian consumers. While these economic pressures are real, they tell only half the story. The deeper driver is psychology: farmers are locked into a relentless cycle, racing for quick cash and fast harvests to repay their debts and survive. Other major producer countries have deliberately chosen a more resilient path. For instance, Vietnam has steadily cultivated a robust domestic shrimp market, worth US $0.36 billion in 2024 and projected to grow to US $0.50 billion by 2033 (IMARC Group). Similarly, Ecuador, while still export-oriented, maintains a modest yet strategic local market that provides a critical cushion during global slowdowns. This contrasts with India’s approach. When tariffs hit, India had no fallback demand at home. The US tariff did not create this fragility; it simply exposed the consequences of relying on a single, volatile strategy. The radar chart in Figure 1 provides a stark visual comparison of shrimp species, and the story is clear: L. vannamei requires “Shrimp aquaculture in India is a great livelihood, but never a secure business model.” When export prices fall, lives here collapse. Litopenaeus vannamei has been showcased as India’s star export commodity. But the reality is that the sector remains tied to one dominant buyer, the United States which has accounted for 36% of India’s seafood exports worth $2.7 billion in FY25 (Shrimp Insights, 2025). The recent 50% US tariff on Indian shrimp and other goods is a punitive measure in a wider dispute, where the US pressured India to stop buying Russian oil and open its agricultural markets for US products. As India refused, its shrimp farmers became collateral damage in the crossfire. India is the world’s second-largest shrimp producer, harvesting over 700,000 tonnes in 2024–25 and earning more than $7.7 billion from seafood exports (MPEDA, 2024). The sector has produced volumes, yes, but not resilience. Overnight, the tariff exposed that fragility, with farm-gate prices in Andhra Pradesh collapsing from ₹320–340 per kg (approximately $3.88–4.12) in July 2025 to below ₹250 (approximately $3.03) within just two weeks (Financial Express, 2025). The system itself runs on credit: most farmers stock ponds with seed and feed supplied on loan by local dealers, who are often linked to large feed companies or processors. Here’s how this works: farmers receive inputs like seed and feed on loan. They pay nothing upfront, but the entire cost is recovered by the company when they sell their harvest. This works when prices are stable. But when prices crash, it can leave farmers facing bankruptcy. On India’s southeast coast, the state of Tamil Nadu has become a primary hub for shrimp hatcheries. Further north, in the state of Andhra Pradesh, which supplies nearly 70% of India’s vannamei, women spend long hours de-heading shrimp in processing plants This entire supply chain is fragile. For these workers, these jobs are essential, paying children’s school fees, putting food on tables, and keeping households afloat. Yet, this economic security depends on boardroom decisions in Washington, D.C., or price fluctuations in Guayaquil, Ecuador’s main export hub. Who got hit next? In response to the tariffs, export companies immediately froze their purchases. This forced processing plants to drastically reduce Why India’s Shrimp Success is Also Its Weakness Amina S, Naveen Nivas S, Dinesh Kaippilly and Geeji MT FIGURE 1. Attributes of Indian cultured shrimp species.
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