Fish exporters in Veraval are worried about their exports to the US sinking after President Donald Trump’s tariff increase. The American market’s resistance to price increases, coupled with the inability of Gujarat’s exporters and fishermen to absorb costs, poses a significant challenge.
Gujarat’s frozen fish exports to the US are worth about Rs 500 crore, and the raised tariffs will add a burden of Rs 100 to 150 crore on the industry.
Kenny Thomas, a seafood exporter from Veraval, said, “An exporter’s margin of 3 to 5% and the fisherman’s profits are not much. Thus, seafood prices will increase in the US after the increased tariff is paid. The American market is not prepared to absorb this price increase, which will effectively reduce our exports to the US.”
The reluctance of American buyers to accept higher prices led to instances where exporters had to revise invoices with reduced prices for shipments in transit when the new tariffs were announced.
India’s principal exports to the US are cuttlefish, squid, fish fillets and ribbonfish. While China remains Gujarat’s largest seafood importer, followed by Europe, Chinese consumers do not buy premium varieties, and European markets are facing inflationary pressures.
Another Veraval exporter, Jagdish Fofandi, said, “The market has a limit to how much prices can increase. There is no scope to raise seafood prices in the US market. They consume seafood as a protein source and will find alternatives such as meat, chicken and beef.”
He added, “We will find out the real impact next season, after the monsoon. These tariffs will adversely affect the incomes of fishermen and we in Gujarat are staring at an overall loss of about Rs 100 crore.”
Exporters are exploring alternative markets, although getting comparable prices in Europe is challenging. One positive aspect is that our major competitors such as Vietnam, China and Indonesia face higher tariffs than India.
Veraval is Gujarat’s principal seafood processing centre, housing 150-odd processing and storage units. Fish from places such as Porbandar, Mangrol, Jafrabad, Okha, Diu and South Gujarat are processed here. These facilities store frozen fish for year-round export operations.