Synopsis:
The India Shrimp Tariff Act, introduced by US Senators Bill Cassidy and Cindy Hyde-Smith, aims to protect Louisiana’s shrimp and catfish industries from the impact of cheap Indian shrimp imports.
Shrimp stocks like Avanti Feeds and Apex Frozen fell up to 3% after US Senators proposed the India Shrimp Tariff Act, which seeks phased tariffs to protect Louisiana’s seafood industry from cheap Indian imports.
Avanti Feeds Ltd
Avanti Feeds Limited, established in 1993 and headquartered in Hyderabad, is one of India’s leading aquaculture companies. Specializing in the production of shrimp and fish feeds, the company operates a vertically integrated model encompassing hatcheries, farms, feed manufacturing, and processing units.
With market capitalization of Rs. 9,725 cr, the shares of Avanti Feeds Ltd are currently trading at Rs. 713 per share, declining by 3% in today’s market session making a low of Rs. 712.05, from its previous close of Rs. 733.15 per share.
Apex Frozen Foods Ltd
Apex Frozen Foods Limited, established in 1995 and headquartered in Kakinada, Andhra Pradesh, is a prominent Indian exporter specializing in shelf-stable aquaculture products. The company processes and exports a variety of shrimp products, including whiteleg (Litopenaeus vannamei) and black tiger (Penaeus monodon) shrimps, under its brands like Bay Fresh, Bay Harvest, and Bay Premium.
With market capitalization of Rs. 752 cr , the shares of Apex Frozen Foods Ltd are currently trading at Rs. 240.77 per share, declining more than 3% in today’s market session making a low of Rs. 238, from its previous close of Rs. 246.59 per share.
News
Following the proposal of the India Shrimp Tariff Act by US Senators Bill Cassidy and Cindy Hyde-Smith, shrimp stocks of major Indian exporters fell by up to 3%. The Act aims to protect Louisiana’s shrimp and catfish industries by imposing phased tariffs on Indian shrimp imports, alleging that Indian shrimp is dumped in the US market at unfairly low prices.
This move comes as Indian shrimp exports have surged, leading to claims that they undercut domestic producers and cause harm to local industries. Key Indian companies such as Avanti Feeds, Apex Frozen Foods, and Coastal Corporation, which derive significant revenue from US shrimp exports, saw stock declines amid concerns over loss of market share due to the proposed higher tariffs.
The Senators emphasize that the Act is intended to create a level playing field for American seafood producers and safeguard related jobs. Indian exporters have dismissed the dumping claims, stressing the quality and competitive pricing of their shrimp products in the US market.
Effect of Trump tariffs on shrimp exporters
US President Donald Trump’s trade tariffs have caused an estimated loss of Rs 25,000 crore to India’s shrimp exporters, particularly impacting Andhra Pradesh, which accounts for 80% of the country’s shrimp exports.
These tariffs have led to the cancellation of about half the shrimp export orders to the US and created immense financial pressure on shrimp farmers and allied sectors.
The Andhra Pradesh Chief Minister has urged the Indian government to provide relief measures, including GST relaxation, financial support for farmers, and exploring alternative markets beyond the US to help mitigate the crisis.
Written by Manideep Appana
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