Shares of Indian seafood exporters declined sharply on Thursday following the announcement of new tariffs by US President Donald Trump. Stocks such as Avanti Feeds, Apex Frozen Foods, Zeal Aqua, and Waterbase fell over 6% after the US imposed a 25% tariff on Indian exports.
Avanti Feeds share price slipped as much as 6.62%, while Apex Frozen Foods declined 6.48%. Zeal Aqua shares fell 4.05%, and Waterbase was down 4.45% on the BSE.
President Trump stated that the 25% tariff on Indian goods will come into effect from August 1. He also announced an additional “penalty” in response to India’s continued defense and energy ties with Russia.
Several Indian sectors with significant exposure to the US market are expected to be impacted, including food exports, textiles, auto components, gems and jewellery, and leather goods.
Seafood and shrimp exporters, in particular, are likely to be affected as the US is a key market for these companies. Reports indicate that Indian shrimp exports currently attract an effective customs duty of 17.7%, which will now increase to 25% under the new tariff regime.
According to a recent report by InCred Equities, India’s market share in US shrimp imports is estimated to rise to 50% by end-CY25, driven by strong supply chain, pricing power, and capacity recovery.
Menwhile, Avanti Feeds in its Annual Report for FY25 said that India currently holds about 20% of the global shrimp market share, with production expected to remain flat at 1.2 million metric tonnes this fiscal.
Nearly 48% of Indian shrimp exports are destined for the US market, making the country highly exposed to policy shifts in that geography.
“Despite these headwinds, revenue growth for Indian shrimp exporters is expected to rise modestly by 2–3% in FY 2024–25, primarily driven by higher realisations due to increased prices and favorable currency movements. However, export volumes are likely to remain flat, and operating margins will face pressure as the tariff burden is passed on only partially and gradually,” said Avanti Feeds.
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