Shaji Baby John
The recent surge in US shrimp prices, driven by tariffs on Indian imports, has brought global attention to a sector often overlooked in trade discussions. While American restaurants and consumers grapple with higher costs, India stands at a unique crossroads. The disruption in global seafood supply chains presents a strategic opportunity for Indian companies to not just expand exports but to establish themselves as a global powerhouse in shrimp production and trade.
US tariffs have exposed a fundamental vulnerability in international seafood markets: heavy reliance on a limited number of suppliers. With Indian shrimp facing a 50n per cent tariff in the US, wholesale prices for popular white shrimp have risen to $6.25 per pound—a 21 per cent increase since April 2025. This increase has directly impacted restaurants and consumers, forcing chains like Red Lobster to restructure its “Endless Shrimp” promotion into a cost-effective version, offering three shrimp dishes for $15.99. Even with these adjustments, shrimp servings in restaurants have already dropped by seven per cent over the past year, reflecting broader adaptation to the new pricing reality. Yet, the underlying demand remains robust. This creates a rare window for India to capitalise on its competitive advantages in technology, scale, and expertise.
Leveraging technology and innovation
India’s aquaculture sector is already globally recognised for technological advancements in hatcheries, disease management, biosecure farming and precision feeding. Companies can scale these technologies domestically to meet growing global demand, while simultaneously exporting expertise. Advanced monitoring systems, AI-driven farm management, and predictive disease control can make Indian shrimp farms the benchmark for efficiency and quality.
Strategic global partnerships and acquisitions
To truly dominate the international shrimp trade, Indian companies should consider cross-border acquisitions and partnerships with reprocessors and distributors in key markets such as the US, Europe and Japan. By acquiring processing facilities abroad, Indian firms can capture a larger share of the value chain, moving beyond raw exports to offer pre-cooked, frozen, and branded shrimp products. This not only enhances profit margins but also positions India as a trusted, quality-focused global supplier.
Expanding value-added and branded products
The future of global seafood trade lies in value-added products. International buyers are increasingly willing to pay premium prices for convenience, sustainability, and quality assurance. Indian exporters can tap into this by offering frozen, ready-to-cook, and sustainably certified shrimp under recognisable global brands. Such an approach elevates India’s presence in international markets and strengthens long-term contracts with major retailers and food service chains.
Sustainability and ESG leadership
Environmental, Social and Governance (ESG) compliance is no longer optional for exporters seeking long-term partnerships. By demonstrating best-in-class sustainable aquaculture practices, Indian companies can differentiate themselves, secure higher-margin contracts, and position India as a responsible global seafood supplier. This approach aligns with rising consumer consciousness and regulatory expectations in developed markets.
Capitalising on supply chain realignments
The current disruption in US imports is just one example of how global supply chains are shifting. Indian firms can proactively diversify sourcing, logistics and distribution to ensure reliability. Investments in cold chain infrastructure, transportation networks and integrated logistics will allow India to respond rapidly to surges in demand, making its exports more attractive and dependable.
A vision for the next decade
By combining technological excellence, strategic acquisitions, value-added branding, and ESG leadership, India can transform from a major shrimp supplier to a global superpower in the seafood trade. Current tariff-driven price shocks are not merely obstacles—they are a wake-up call for Indian businesses to assert leadership, capture greater value and shape the future of international shrimp supply chains.
India has the talent, resources, and expertise to seize this opportunity. The convergence of market disruption and global demand for high-quality, sustainably farmed seafood makes the next decade a decisive period. Companies that act boldly now—investing in technology, acquiring global processing assets, and building internationally recognised brands—can secure India’s position as the preeminent global shrimp powerhouse.
(The author is chairman and managing director of Kings Infra Ventures Limited; views expressed are personal)
