The shares of Indian shrimp exporters dropped in trade on September 22 as investors remained concerned over the 'India Shrimp Tariff Act' which was recently introduced in the American Congress.
Avanti Feeds shares dropped around 2.5 percent to trade at Rs 715 apiece, while Apex Frozen shares fell nearly 3.5 percent to trade at Rs 238 apiece. Coastal Corporation shares were down over 1 percent.
What is the 'India Shrimp Tariff Act'?
US Senators Bill Cassidy and Cindy Hyde-Smith introduced the India Shrimp Tariff Act in Congress last week, aiming to restrict what they described as unfair trade practices by India that threaten Louisiana's shrimp and catfish industries.
The proposed act seeks to counter the dumping of Indian shrimp into US markets. "By leveling the playing field, this bill protects Louisiana seafood and the jobs that depend on it,” Cassidy said, adding that local shrimpers and catfish farmers maintain far higher standards.
Hyde-Smith meanwhile said that unchecked imports have hurt US shrimpers, processors, and consumers. "This bill will put our domestic industry on a more level playing field," she said. If passed, the act may hurt the margins of the export-oriented shrimp feed companies.
'Trump tariffs cause a loss of Rs 25,000 crore to India’s shrimp exporters'
Earlier last week, Andhra Pradesh Chief Minister N Chandrababu Naidu said that US President Donald Trump's tariffs may have caused a loss of Rs 25,000 crore to India's shrimp exporters, with up to half of the export orders facing cancellations. He requested Centre's support for Andhra's aquaculture sector.
"The taxes imposed by America majorly hit shrimp exports. It is estimated that a loss of Rs 25,000 crore would have occurred. Up to 50 percent export orders have been cancelled," Naidu said in a letter to Finance Minister Nirmala Sitharaman, Commerce Minister Piyush Goyal and Fisheries Minister Rajiv Ranjan Singh.
Andhra Pradesh makes up 80 percent of India's shrimp exports, worth over Rs 21,000 crore every year. During FY24, India exported record volume of seafood worth $7.38 billion, with USA and China being the major importers and frozen shrimp the largest export item, according to data from Marine Products Export Development Authority (MPEDA). During FY25, India shipped seafood worth Rs 62,408 crore ($7.45 billion).
Also read: Our LIVE blog on stock market updates
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
