Shares of Avanti Feeds plunged 16.82% to Rs 753.20, while Apex Frozen Foods fell 5.83% to Rs 207.15 on the BSE. Avanti Feeds hit an intraday low of Rs 720, and Apex Frozen Foods reached an intraday low of Rs 199.25 during the session.
The two companies rely heavily on exports to North America for their revenue. In FY24, Avanti Feeds derived 83% of its revenue from North America, while the figure for Apex Frozen Food was 64%.
The total value of India’s shrimp exports is reportedly Rs 50,000 crore, with the US accounting for nearly 44% of the total shrimp exports.
As per media reports, the total tariff on Indian shrimp exports, post the imposition of the new tariffs, could be 45%. These new tariffs are expected to make Indian shrimp more expensive in the US, potentially halting supplies to the key market.
The reports also stated that India could maintain or even expand its agricultural exports to the United States despite newly announced tariffs, as competing nations face even steeper duties. While India faces 26% tariffs, China faces 34%, creating an 8% differential advantage for Indian exporters. Other competitors face even steeper barriers, with Vietnam at 46%, Bangladesh at 37%, Thailand at 36%, and Indonesia at 32%.
India's relative tariff advantage combined with shrimp's small share in overall US food expenditure means demand is unlikely to shrink significantly, a media report said.
Avanti Feeds is a manufacturer of prawn and fish feeds and shrimp processors and exporters. The company's principal products/services are shrimp feed and processed shrimp.
Apex Frozen Foods is an integrated producer and exporter of shelf-stable, quality aquaculture products.