Jagan Mohan Reddy had to deal with the Covid-19 pandemic, which severely impacted the economy during his tenure.
Now, it is Chandrababu Naidu’s turn to tackle the impact of Trump-era tariffs, which are troubling the economy with a cascading effect.
An estimated amount of Rs 1,300 crore or more could be lost if aqua exports, particularly products like prawns, do not reach the United States and get sold by April 9.
If U.S. buyers reject the shipments due to increased tariffs, farmers in Andhra Pradesh will face a dire situation. Adding to the crisis, aqua products have a short shelf life and perish quickly.
Chandrababu Naidu has already raised this issue and written to the Centre, urging immediate intervention, as the state’s economy heavily depends on aquaculture and stands to suffer a significant financial blow.
It should be noted that Indian aqua farmers are already burdened with a 5.77% Countervailing Duty (CVD). Taking all such duties into account, India is at a 20% disadvantage compared to Ecuador.
Ironically, Ecuador — being geographically closer to the U.S. — has become the preferred source for American buyers. If this situation continues, the U.S. might stop importing from India altogether.
Chief Minister Chandrababu Naidu stated that the products, already harvested based on earlier orders, have been packaged and are currently stored in cold storage facilities and ports. The status of this shipment remains uncertain and concerning.
However, this issue is not limited to aquaculture alone. The situation is spreading to all exports from India, and it is highly alarming how the cascading effects of US Tarfiffs could deliver a severe blow to the economy.
