Avanti Feeds slumped 18.3% to Rs 727, whereas Apex Frozen Foods dropped as a lot as 7.7% to Rs 199.25 on the BSE. Coastal Corp, one other seafood exporter, additionally snapped a three-day profitable streak, tumbling 9% to Rs 36.05. The losses come as buyers react to issues over the affect of recent U.S. tariffs on India’s seafood export sector.
Trump, in an announcement late Wednesday, held up a chart detailing the brand new tariff construction, stating that India imposed 52% tariffs on U.S. imports, together with “forex manipulation and commerce limitations.” In response, the U.S. will now impose a “discounted reciprocal tariff” of 26% on Indian exports, together with seafood merchandise.
The sell-off displays investor issues over the heavy export dependence of those companies on the U.S. market. As of the December quarter, 69% of Avanti Feeds’ whole income got here from North America, whereas Apex Frozen Foods derived 64% of its export income from the area in FY24, in accordance to their investor displays.
“Being an export-oriented sector, any slowdown in consumption in key markets just like the U.S., EU, and Southeast Asia may have an opposed affect on India’s shrimp exports,” Apex Frozen Foods had famous in its Q3FY25 investor report.
The U.S. is India’s largest shrimp export market, accounting for $2.4 billion out of $5.6 billion in whole shrimp exports. India provides 40% of the U.S. shrimp market, with a major share of its shipments processed in Latin America earlier than reaching American shoppers.The broader seafood business may take successful as nicely. In accordance to World Commerce Analysis Initiative (GTRI), India’s fish, meat, and processed seafood sector—price $2.58 billion in exports—faces a 27.83% tariff differential underneath Trump’s new coverage, making Indian shrimp considerably much less aggressive, in accordance to PTI.India shipped 1.73 million tonnes of seafood price Rs 63,969 crore ($8.09 billion) in 2022-23, with frozen shrimp as the highest export merchandise. The U.S. and China have been the biggest patrons of Indian seafood.
With shrimp farms—primarily situated in Andhra Pradesh—reliant on U.S. demand, the most recent tariffs may stress margins and damage earnings for Indian seafood exporters within the coming quarters.
Additionally learn | Trump tariff hike hits Dalal Road: 4 sectors going through the most important affect, world brokerages decode
(Disclaimer: Suggestions, strategies, views and opinions given by the consultants are their very own. These don’t characterize the views of the Financial Instances)
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