Indian seafood sector warns of export risks amid US labour dispute

The Indian seafood industry has raised alarm over accusations targeting major exporter Nekkanti Sea Foods, with sector representatives warning that escalating tensions could damage the country's substantial trade relationship with the United States. The dispute centres on forced labour allegations made by a US shrimp lobby group, claims that Indian exporters say are unsubstantiated and risk creating unnecessary barriers to commerce.

India is among the world's largest shrimp exporters, with the United States representing a critical destination for shipments. Industry bodies have cautioned that unresolved labour disputes could trigger enhanced scrutiny of Indian seafood products, potentially leading to import restrictions or tariffs that would impact multiple companies beyond those directly involved in the current row.

Exporters have called for dialogue to resolve the matter, emphasising that the Indian seafood industry operates under strict compliance frameworks. They have urged both governments to engage in bilateral discussions rather than allow the dispute to escalate through unilateral trade actions.

The controversy highlights mounting pressure on global seafood supply chains over labour and sustainability standards. Shrimp production has faced increasing international scrutiny in recent years, with environmental and social concerns shaping buyer preferences and regulatory approaches across major consuming nations.