The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Dhiren Chotaliya, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
The US government has raised the anti-dumping duty on import of frozen shrimps from India. USA continues to be the largest market for Indian seafood with a market share of about 29 percent. it may have an impact on the exports from country as it is evident that USA is the largest market for Indian shrimps.
It might be possible thatIndian exporters will switch to other markets which are erratic. It will not fetch better realizations. If alternative markets do not behave accordingly the exports market may crash. We have no other means but to passing it on the aquaculture farmers. The exports may fall value wise.
The proposed increase in the anti-dumping duty to almost 4.98% from the existing 2.96 percent (country average) may severely impact exports to the USA apprehend the seafood exporting community.Major leading exporters have a USA based marketing orientation and the production line is tuned accordingly.Such a move would also make seafood from India less competitive in pricing terms and we may lose out in competition to competitors from Vietnam, Indonesia and other countries.
It is expected that ministry of commerce will come forward and take a delegation including the exporters to US to sort out the issue