19 hours ago
Shares of shrimp feed companies Avanti Feeds Ltd. and Apex Frozen Foods Ltd. fell up to 9% Thursday, April 3, after US President Donald Trump announced reciprocal tariffs on as many as 60 countries, including India.
A reciprocal tariff of 27% has been imposed on India, with exemptions for certain sectors such as Pharma for now.
As of the December quarter, Avanti Feeds derived 69% of their overall revenue from the North American Market, down from 82% during the same quarter last year.
Apex Frozen Foods, in its December quarter investor presentation, disclosed that 52% of its overall revenue came from the United States.
In the latest Union Budget, the Basic Customs Duty on Frozen Fish Paste (Surimi) from 30% to 5% for the manufacture and export of its analogue products. It also proposed to reduce the duty on fish hydrolysate for manufacture of fish and shrimp feeds to 5% from 15% earlier.
As per a Hindu Business Line report dated February 25, India's seafood exporters had appealed for a waiver of the 30% customs duty that is imposed on shrimp imports from the US.
India saw a 55.4% year-over-year increase in shrimp exports to the US in January, rising from 44.22 million pounds (20,055 MT) to 68.72 million pounds (31,164 MT).
Indian marine exports are currently at ₹60,000 crore, of which Shrimp exports accounted for ₹50,000 crore. US Shrimp imports are currently worth ₹22,000 crore, according to a note from InCred Equities.
Existing tariffs include an Anti-Dumping Duty stands at 2% to 4% and a Counter-Veiling Duty is 6%. With a universal tariff of 10%, and a reciprocal tariff of 27%, takes the total tariff on Indian Shrimp is 45%, the note said.
This may result in Shrimp exports stopping to the US as other export markets have also been hit with tariffs, InCred said.
Shares of Avanti Feeds are down 9.2% on Thursday at ₹808.8, while those of Apex Frozen Foods are trading with losses of close to 4% at ₹208.
Shares of Avanti Feeds have risen 22% over the last one month and are trading close to their 52-week high, while Apex Frozen Foods have risen only 4% over the last month, but are down from their 52-week low.
First Published:
Apr 3, 2025 7:36 AM
IST
