Thoppumpady: The United States has raised its duty on products from India by 50%, a decision that came into effect on Wednesday. This has triggered a severe crisis for Kerala’s seafood industry. Companies had already accumulated stocks worth crores of rupees, backed by numerous US order commitments.

Orders cancelled, stocks unsellable

Even orders placed six months ago with Kerala firms now appear to have been cancelled indefinitely. Exporters report that all such orders have effectively been nullified. Typically, shipments bound for the US account for around ₹21,000 crore annually, but this year, export volumes have dropped to less than 10% of that. Most of the products are still in warehouses—shrimp forming a significant portion. Companies are holding inventory to be shipped over the next six months, but with the US decision, their value has reportedly dropped by approximately 50%.

China pulls back too

Due to the sharp decline in exports to the US, exporting countries like China, Vietnam and Thailand are anticipating a fall in prices and are pulling back their orders. Businesses say they are awaiting price corrections before proceeding.

Exporters plead for support

Exporters who have invested crores in stock that they now cannot ship are demanding that enterprises be granted loans at minimal interest rates—ideally at 30% above operational costs. They point out that government support was provided across sectors during the COVID-19 pandemic, but now the crisis is even more severe.

The Seafood Exporters Association has appealed to the government for intervention. Alex K Nainan, vice president of the association, said that while multimillion-rupee stockpiles remain unsent, they urgently need financial support to stay afloat.