Exports – India’s seafood shipments rise in volume but earnings weaken
Exports – India’s seafood exports have expanded significantly in quantity over the past few years, but the financial returns have not kept pace due to declining global prices. According to data presented in the Lok Sabha on April 2, 2026, export volumes increased from around 11.5 lakh metric tonnes in 2020–21 to nearly 17.8 lakh metric tonnes in 2023–24, before showing a slight moderation. While total export earnings crossed the $8 billion mark at their peak, the average price per kilogram dropped notably, reflecting reduced profitability despite higher shipments.
Falling Prices Offset Growth in Export Volumes
The data highlights a clear mismatch between rising export quantities and declining unit value. The average price per kilogram of seafood exports fell from about $5.67 to nearly $4.14–4.39 over the observed period. This suggests that exporters are shipping larger volumes but receiving lower returns per unit. The trend indicates pressure on margins and points to a global market environment where supply remains strong but pricing power has weakened.
Industry observers note that exporters have had to adjust pricing strategies to stay competitive, especially in markets where buyers are increasingly price-sensitive. This has resulted in a scenario where growth in shipment volumes does not translate into proportional revenue gains.
Impact of Trade Barriers in Key Markets
A major factor behind this trend has been developments in international trade, particularly in the United States, one of India’s largest seafood markets. In 2025, tariffs of up to 50% were imposed, significantly increasing costs for Indian exporters. As a result, shipments to the US declined sharply in the latter half of the year.
Monthly export figures during this period showed steep year-on-year declines, in some cases exceeding 50%. Buyers began sourcing seafood from countries offering lower tariff rates, such as Ecuador, which further intensified competition.
Market Adjustment Alters Export Dynamics
The impact of tariffs created a noticeable shift in export patterns. Early in 2025, shipment volumes remained relatively stable, but as the year progressed, both demand and pricing weakened. Exporters responded by lowering prices to retain buyers, which contributed to the decline in average unit value.
Industry estimates suggest that under challenging conditions, seafood exports could drop by around 20%, particularly if trade restrictions continue to affect demand in key markets. Shipments to the US remain especially vulnerable due to tariff-related cost pressures.
Partial Relief but Competition Persists
In early 2026, tariffs were reduced to approximately 18%, providing some relief to exporters. However, the gap in tariff rates compared to competing countries continues to affect India’s competitiveness. Exporters are still navigating a complex global trade environment, where even small differences in costs can influence buyer decisions.
Expansion of Processing Infrastructure in India
On the domestic front, India has been strengthening its seafood processing capabilities. The country now has 671 marine fish processing units, with Gujarat and Andhra Pradesh leading in capacity, followed by Kerala. These states form the backbone of the industry’s processing infrastructure.
In contrast, eastern states such as West Bengal and Odisha have not developed at the same pace, indicating regional disparities in industrial growth within the sector.
Government Schemes Support Industry Growth
Government initiatives have played a role in supporting the seafood sector’s expansion. Programs such as the Pradhan Mantri Kisan Sampada Yojana and the Production Linked Incentive Scheme for Food Processing Industry have collectively backed projects worth over Rs 1,800 crore. These efforts focus on improving cold storage facilities, enhancing mechanisation, and promoting value-added processing.
Despite these initiatives, the sector remains largely dependent on bulk exports. The decline in unit prices suggests that the transition toward higher-value products is still limited. Moving up the value chain remains a key challenge if the industry aims to improve profitability and reduce vulnerability to global price fluctuations.