Nation’s exports on a roller coaster, seafood market will be worst hit, warn Madurai traders
Currently, there is no market alternative to the existing situation and exporters reliant on the US demand would have to bear the brunt of market uncertainty, the chamber leader said.
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MADURAI: S Rethinavelu, President of the Agri and All Trade Chamber from Madurai, has warned that the 50% US tariffs on goods from India will have a devastating impact on domestic industries dependent on markets outside, as the US is India’s largest export market.
Currently, there is no market alternative to the existing situation and exporters reliant on the US demand would have to bear the brunt of market uncertainty, the chamber leader said. The stakeholders of the export trade are waiting for relief from the Centre, he said.
Joe Celestine Villavarayar, president of Container Freight Stations, Thoothukudi, stated that exports of garments and seafood will be severely impacted by the turn of events. This unhealthy situation would harm the economies of Tirupur, Salem, and Karur, he added.
As Tamil Nadu and Andhra Pradesh are the largest exporters of seafood, special focus is needed on the southern states. The cascading impact of tariffs would also affect the US consumer market as a result of product cost escalation, but the outcome is tough to predict, he added.
J. David Raja, senior vice president of St. John Freight Systems Limited, Thoothukudi, is building hopes that US citizens are mostly brand-conscious and can afford goods of higher cost. So, he doesn’t see a washout of exports from India.
But seafood industries have already started facing the heat. Over 60 containers of US-bound seafood varieties were returned to Thoothukudi, as traders could not afford to sell marine products at such high prices after the imposition of tariffs, they said.
Sudhakaran Nair, vice president of Baby Marine (Eastern) Exports, Mandapam, Ramanathapuram district, stated that approximately 35 per cent of India’s total seafood exports cater to the demands of buyers in the US, adding that this will have a direct impact on the livelihoods of fishermen.
Gunasingh Chelladurai, President of the Tirunelveli Chamber of Commerce, stated that the US accounts for 20 per cent of India’s aluminium exports. To overcome this new obstacle, he urged the Indian government to arrange delegation visits to non-US countries to open up foreign markets for aluminium exports.
