Shares of India’s leading shrimp exporters tumbled as much as 7% on Thursday, July 31, after U.S. President Donald Trump announced a 25% tariff and unspecified penalties on Indian goods, citing continued business ties with Russia.
Avanti Feeds, Apex Frozen Foods, and Waterbase Ltd saw sharp declines as investors reacted to the potential hit to exports. Avanti Feeds shares dropped 6.6% to Rs 645, Apex Frozen Foods fell 6.5% to Rs 225.05, while Waterbase shed 4.5% to Rs 49.16.
The declines follow Trump’s Wednesday evening announcement that India will face a 25% tariff on all its exports to the United States, alongside an unspecified financial penalty for its dealings with Russia, including defence and oil purchases.
The U.S. is a crucial market for India’s shrimp exporters. Avanti Feeds, generated 77% of its revenue from North America in the March 2025 quarter, slightly down from 80% in the same quarter last year. Apex Frozen Foods, according to its March quarter investor presentation, derived 53% of its revenue from the U.S.
High exposure, rising duties
India currently accounts for about 20% of global shrimp production, estimated to remain flat at 1.2 million metric tonnes this fiscal. Nearly 48% of these exports are destined for the U.S., according to Avanti Feeds’ latest annual report.
Before the newly announced measures, Indian shrimp exports to the U.S. were subject to an effective duty of 17.7%, including 5.7% in countervailing duties and 1.8% in anti-dumping duties. The new tariff will raise this to 25%, excluding the additional penalty announced by the U.S. President.
Economic fallout expected
Agri-economist Ashok Gulati told PTI on Wednesday that the decision to impose a higher tariff on Indian goods was “very bad” and “shocking.” Gulati, who expected a 10–15% hike, said the 25% tariff would “severely impact” India’s shrimp exports, adding that Ecuador, with its lower duties and closer proximity to the U.S., stood to benefit.
India exported shrimp worth approximately $4.88 billion in FY25, accounting for 66% of the country’s total seafood exports. The U.S. and China remain India’s top markets for shrimp, with the U.S. absorbing nearly half of all raw shrimp varieties.
The new tariffs are expected to come into effect from August 1.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Avanti Feeds, Apex Frozen Foods, and Waterbase Ltd saw sharp declines as investors reacted to the potential hit to exports. Avanti Feeds shares dropped 6.6% to Rs 645, Apex Frozen Foods fell 6.5% to Rs 225.05, while Waterbase shed 4.5% to Rs 49.16.
The declines follow Trump’s Wednesday evening announcement that India will face a 25% tariff on all its exports to the United States, alongside an unspecified financial penalty for its dealings with Russia, including defence and oil purchases.
The U.S. is a crucial market for India’s shrimp exporters. Avanti Feeds, generated 77% of its revenue from North America in the March 2025 quarter, slightly down from 80% in the same quarter last year. Apex Frozen Foods, according to its March quarter investor presentation, derived 53% of its revenue from the U.S.
High exposure, rising duties
India currently accounts for about 20% of global shrimp production, estimated to remain flat at 1.2 million metric tonnes this fiscal. Nearly 48% of these exports are destined for the U.S., according to Avanti Feeds’ latest annual report.
Before the newly announced measures, Indian shrimp exports to the U.S. were subject to an effective duty of 17.7%, including 5.7% in countervailing duties and 1.8% in anti-dumping duties. The new tariff will raise this to 25%, excluding the additional penalty announced by the U.S. President.
Economic fallout expected
Agri-economist Ashok Gulati told PTI on Wednesday that the decision to impose a higher tariff on Indian goods was “very bad” and “shocking.” Gulati, who expected a 10–15% hike, said the 25% tariff would “severely impact” India’s shrimp exports, adding that Ecuador, with its lower duties and closer proximity to the U.S., stood to benefit.
India exported shrimp worth approximately $4.88 billion in FY25, accounting for 66% of the country’s total seafood exports. The U.S. and China remain India’s top markets for shrimp, with the U.S. absorbing nearly half of all raw shrimp varieties.
The new tariffs are expected to come into effect from August 1.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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