India's shrimp exporters face tightening international scrutiny on food safety, and the government's new digital traceability tool aims to protect access to the United States, European Union, and Japanese markets — the three largest destinations reporting rejections. The Union Ministry of Commerce and Industry has rolled out a nationwide app-based enrolment mechanism called Aqua Trace for aquaculture farms and hatcheries to establish a robust traceability system and strengthen compliance with international food safety and sustainability standards, according to Minister of State for Commerce and Industry Jitin Prasada.
Rejection frequency and financial impact
Replying to a question in the Lok Sabha raised by Kanimozhi Karunanidhi on the rejection of shrimp consignments exported from India during 2018–26, Prasada said only a small proportion of consignments were rejected due to reasons such as antibiotic residues, bacteriological contamination, unhygienic handling, and poor time-temperature control. The average rejection rate of shrimp consignments exported from India during 2018–26 stood at just 0.13% of total exports, according to the minister.
| Metric | Value |
|---|---|
| Average rejection rate (2018–26) | 0.13% of total exports |
| Major importing markets reporting rejections | United States, European Union, Japan |
| Total consignments rejected in 2026 | 17 |
| Estimated financial loss from 2026 rejections | ₹7.45 crore |
| Consignments rejected for antibiotic residues in 2026 | 9 (compared with 27 in the previous year) |
Regulatory and capacity-building measures
Consignments rejected for reasons other than antibiotic residues are permitted to be reprocessed and re-exported after clearance from the Export Inspection Council through its Export Inspection Agencies. Permission for domestic sale can also be obtained from the Food Safety and Standards Authority of India (FSSAI) after mandatory testing in approved laboratories, Prasada said.
To address losses arising from antibiotic-related rejections, the government has notified a series of regulations in 2025 in line with national and international standards for aquaculture products:
- A ban on the import, manufacture, distribution, and sale of Chloramphenicol and Nitrofuran for use in food-producing animal rearing systems.
- Prohibition of 37 antimicrobials reserved for human use in shrimp, prawn, fish, and fisheries production.
- Restrictions on 34 listed antimicrobial veterinary medicinal products.
The government has also stepped up capacity-building initiatives for shrimp farmers and processing workers, including:
- Antibiotic awareness programmes
- Best Aquaculture Practices (BAP) training
- Hygiene and HACCP training
- Formulation of a National Framework for Traceability Systems in fisheries and aquaculture
Forward outlook: US Food Traceability List
Industry sources said that the US is planning to implement a Food Traceability List under the Food Safety Modernisation Act (FSMA) from January 2028 onwards. This will call for mandatory traceability requirements for all seafood consignments reaching the USA. Hence, the Aqua Trace measure by the government is a step in the right direction, according to the sources.
What this means for your supply chain
For procurement and sourcing teams responsible for Indian shrimp, the low 0.13% rejection rate provides assurance, but the 2026 loss of ₹7.45 crore from 17 rejections underscores the concentrated risk in just three markets. The 2025 antibiotic bans and the upcoming FSMA Food Traceability List make regulatory compliance a non-negotiable prerequisite. Importers and retailers should verify that their suppliers are enrolled in the Aqua Trace system and have completed the government's capacity-building programmes. The transition from voluntary to mandatory traceability in the US by January 2028 gives less than 18 months to align supply chains; early adoption of the app can reduce the risk of future shipment rejections and maintain access to premium markets.
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