Shrimp Industry at Crossroads
Odisha’s seafood sector, led by its thriving shrimp industry, has long been a cornerstone of the state’s export economy. Frozen shrimp and fish dominate the trade basket, with the United States consistently serving as the largest buyer. But this profitable equation has been upended by Washington’s decision to slap a steep 50% tariff on seafood imports, a move that threatens to derail livelihoods across aquaculture farms, processing units, and export hubs.
The impact is immediate and severe: exporters face shrinking profit margins, while thousands of workers tied to shrimp cultivation, harvesting, and logistics are staring at uncertainty. Against this backdrop, Odisha’s government and allied agencies have stepped in to cushion the blow and craft a strategy that can make the industry not just survive but evolve stronger.
Tariff Shock and Emergency Response
At a high-level meeting held on September 12, officials from the state MSME department, the Marine Products Export Development Authority (MPEDA), fisheries authorities, Paradip Port Trust, customs, and exporters joined forces to devise solutions. “Frozen shrimp and fish remain Odisha’s top export items, with the US continuing as the largest market,” noted Subhrakant Mohapatra, MPEDA’s state coordinator, underlining the scale of disruption caused by the tariff hike.
Recognizing the urgency, the meeting identified short-term relief measures and long-term structural changes that could reduce overdependence on the US and broaden Odisha’s global seafood footprint.
Reinforcing Cold Chain Infrastructure
A central pillar of the plan is strengthening cold chain logistics. Paradip Port, a key export gateway, will see additional refrigerated container (reefer) points to accommodate growing cargo volumes. Enhanced quarantine and certification facilities are also being set up at port level to ensure Odisha’s exports meet the rigorous standards of international buyers.
The blueprint includes an ambitious seafood cargo corridor linking Paradip Port with Biju Patnaik International Airport (BPIA) in Bhubaneswar. Such a corridor would ensure seamless transfer of perishable consignments, minimizing transit delays and reducing spoilage.
Push for Air Cargo and Global Links
Air connectivity has emerged as a priority. The MPEDA has recommended dedicated cargo flights and the allocation of belly cargo space in passenger aircraft for carrying chilled and live seafood. To complement this, Odisha plans to establish a world-class perishable cargo handling center with cold storage at BPIA, transforming the airport into a reliable hub for seafood logistics.
Officials are also pushing for direct international flights from Bhubaneswar to high-demand markets in the Middle East and Southeast Asia. Coupled with subsidies for exporters using air cargo and reefer containers, this would help offset rising costs and open up fresher trade routes.
Exploring New Markets Beyond America
Perhaps the most critical lesson from the current crisis is the risk of overreliance on a single market. To address this, Odisha and MPEDA are actively scouting alternative buyers. Talks are already underway with the Gulf-based LuLu Seafood Group, a major retail chain with strong distribution networks across the Middle East.
Plans are also in motion to host large-scale buyer-seller meets in Odisha, providing a platform for international retailers and local exporters to forge new partnerships. Such initiatives could position Odisha as a sustainable and reliable seafood supplier at a time when global demand for protein-rich food is rising.
High-Level Support for Revival
The rescue roadmap enjoys strong political and administrative backing. Chief Secretary Manoj Ahuja chaired the strategy session, joined by MSME principal secretary Saswat Mishra and senior fisheries and port officials. Their involvement signals that Odisha views seafood not just as a trade commodity but as a driver of livelihoods and rural prosperity.
Crisis as an Opportunity
The US tariff has undoubtedly jolted Odisha’s seafood sector, but it has also sparked a timely introspection. Heavy reliance on one market has been exposed as a vulnerability, and the current disruption offers an opportunity to modernize infrastructure, diversify buyers, and expand into air cargo logistics.
If Odisha follows through on its bold plans—from cargo corridors to international tie-ups—the state could transform this setback into a stepping stone toward resilience. By investing in stronger cold chains, promoting global connectivity, and supporting farmers and exporters, the government has laid out a roadmap that deserves recognition. In turning crisis into opportunity, Odisha is not merely salvaging its shrimp industry — it is preparing it to thrive in a more competitive and unpredictable global market.
(With agency inputs)
