Falling Prices, Unsold Seafood Stocks Pushing Exporters Into Crisis: SEAI VP
The United States (US) tariff shock has left Indian exporters grappling with unsold inventories, plunging prices and mounting cold storage costs, raising fears of job losses across fishing and aquaculture communities, Alex K Ninan, Vice President of the Seafood Exporters Association of India (SEAI), told BW Businessworld.“Prices have dropped, and exporters are sitting on unsold stocks in warehouses and cold storage facilities. Holding them involves heavy running costs. Perishable goods demand strict handling, and trained staff are vital. If production has to be cut, jobs will be at risk. Once skilled workers leave, it is not easy to bring them back,” he added in an interaction with BW.
Currently, India is the sixth-largest supplier of marine products and the second-largest producer of farmed fish. In 2023-24, it exported 1.78 million tonne of seafood worth Rs 60,523.89 crore (USD 7.38 billion). Overall fish production rose to 18.40 million tonne, showing steady expansion across both coastal and inland waters.
Edited excerpts:
How severely have US tariffs affected Indian seafood exports, and what steps are being taken to manage the fallout?
One-third of India’s seafood exports go to the US, so the new tariff regime has been a major setback. An additional 50 per cent duty has been imposed, while a competitor like Ecuador faces only 10 per cent. That immediately puts us at a disadvantage. Shipments have been held back, in some cases cancelled, though certain consignments are still going through because advance orders had already been placed. Buyers are now asking exporters to absorb part of the duty burden. Since we have longstanding relationships and also need to move inventory, exporters are reluctantly bearing some of the cost.
What impact could this have on employment, especially among small-scale fishermen and aquaculture farmers?
The pressure is already visible. Prices have dropped, and exporters are sitting on unsold stocks in warehouses and cold storage facilities. Holding them involves heavy running costs. Perishable goods demand strict handling, and trained staff are vital. If production has to be cut, jobs will be at risk. Once skilled workers leave, it is not easy to bring them back.
For fishermen, the problem begins with fuel. Diesel is their biggest input cost, and if the market price falls, they cannot recover expenses. Many will be forced to stay ashore. Aquaculture farmers face a similar situation. Some are scaling down production, while others are shutting operations altogether. Unless a fair price is ensured, neither fishing nor farming remains viable.
Which countries or regions offer the most promise as alternative markets, and what obstacles stand in the way of shifting away from the US?
China is currently the second largest importer of Indian seafood and we also export to Vietnam, Indonesia and Thailand. Europe is a promising destination as well, especially with the India-EU free trade agreement moving forward. But European buyers are extremely strict on quality standards, so exporters must exercise great caution. Switching markets is not easy. It takes time to build demand and meet regulatory conditions. Far East and Eastern markets are also being explored, and new trade agreements may open up additional opportunities. Still, none of these can replace the US overnight.
What sustainability measures has the association adopted to ensure the industry follows eco-friendly practices?
The government has clear rules against catching juvenile fish, with states responsible for enforcement. For example, regulations prescribe minimum mesh sizes for fishing nets. Exporters themselves have pledged not to buy unsustainably sourced products.
On the aquaculture side, newer practices are being adopted. Polyculture farming reduces water wastage, and shrimp waste is increasingly being recycled into manure. The sector is moving away from obsolete methods towards more efficient and environmentally responsible models.
What policy or regulatory reforms would you like to see to improve competitiveness and exports?
We currently have 102 units approved for export to the European Union, and it is critical to maintain those approvals. That means strict testing and zero tolerance for contamination, antibiotics or other violations. We are increasing our own testing standards to ensure compliance. Losing EU approvals would be a severe blow, especially at a time when the US market has become more difficult.
India has set an ambitious target of USD 15 billion in seafood exports by 2030. Beyond the tariff issue, what is the biggest hurdle to achieving this goal?
The real challenge is expanding aquaculture. India has an 11,000-kilometre coastline, but inland resources are just as important; dams, reservoirs and rivers offer scope for farming species like trout, which is highly valued. We are also pushing for cage farming. During the fishing ban periods on the east and west coasts, fishermen can use cages in the ocean to grow juvenile fish or shrimp. This provides an alternative income stream when regular fishing is prohibited and can help reduce pressure on wild stocks.
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