Umair
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Shares of shrimp feed companies Avanti Feeds Ltd. and Apex Frozen Foods Ltd. plunged as much as 17% on Thursday
Trump Reciprocal Tariffs: Shrimp Exports To Get Impacted
Shares of shrimp feed companies Avanti Feeds Ltd. and Apex Frozen Foods Ltd. plunged as much as 17 per cent on Thursday, April 3, after US President Donald Trump announced reciprocal tariffs on exports from 60 countries, including India.
India faces a 27 per cent reciprocal tariff, though certain sectors like pharmaceuticals have been exempted for now.
At a press conference, Trump displayed a tariff chart outlining US duties on various countries. For India, the chart claimed the country levied a 52 per cent tariff on US goods, citing “currency manipulation and trade barriers.” In response, the US imposed a “discounted reciprocal tariff” of 26 per cent.
Avanti Feeds saw its shares plummet 17 per cent to Rs 733 apiece. According to its Q3 FY25 investor presentation, the company derived 69 per cent of its revenue from North America as of the December quarter, down from 82 per cent in Q3 FY24. Additionally, 17% of its revenue came from Europe, and 14% from Asia.
Apex Frozen Foods also took a hit, with shares tumbling over 3 per cent to Rs 209 apiece, marking their lowest level in nearly a month. The U.S. was its top export market in FY24, accounting for 64 per cent of total exports. In its Q3 FY25 investor presentation, the company warned that “being an export-oriented sector, any slowdown in consumption in key markets like the US, EU, and Southeast Asia will negatively impact India’s shrimp exports.”
Coastal Corp shares followed suit, slipping more than 3 per cent to Rs 38.16 apiece, ending a three-day gaining streak.
The U.S. remains India’s largest shrimp export market, importing $2.4 billion worth of shrimp out of India’s total $5.6 billion in exports. Indian shrimp make up 40 per cent of the U.S. market, with a significant portion processed in Latin American countries before reaching American shores.
India has approximately 100,000 shrimp farms, primarily in Andhra Pradesh. In FY23, India achieved record seafood exports, shipping 17,35,286 tonnes worth Rs 63,969.14 crore ($8.09 billion). Frozen shrimp remained the dominant export item, with the US and China serving as the largest importers of Indian seafood.
