Indian Shrimp Exporters Face Market Jitters After US Tariff Hike
Shares of Avanti Feeds, Apex Frozen Foods, and Coastal Corp crashed on April 3 following US President Donald Trump’s announcement of a 27% reciprocal tariff on Indian shrimp exports. The move sent shockwaves through the sector, given the heavy reliance on the American market for revenue.
Avanti Feeds, a leading exporter in the industry, suffered the biggest blow, plunging 15% to ₹754.95 per share. The company’s latest financial disclosures indicate that 69% of its revenue in Q3FY25 came from North America, although this was a decline from 82% in Q3FY24.
Apex Frozen Foods also saw a sharp decline, falling nearly 4% to ₹207.49 per share, marking its lowest level in almost a month. The company’s exports to the US accounted for 64% of its total sales in FY24.
Meanwhile, Coastal Corp shares dropped over 8% to ₹36.30 per share, snapping a three-day gaining streak.
Highlights from the Stock Market Impact:
Avanti Feeds: -15% to ₹754.95 per share (69% revenue from North America).
Apex Frozen Foods: -4% to ₹207.49 per share (64% revenue from the US).
Coastal Corp: -8% to ₹36.30 per share, ending a recent upward trend.
US is the Largest Market for Indian Shrimp Exports
The tariff hike is expected to have significant consequences for India’s seafood industry. The United States is the single largest importer of Indian shrimp, accounting for $2.4 billion out of the $5.6 billion worth of shrimp exported from India annually. Indian shrimp hold a 40% market share in the US, making this tariff a direct hit to Indian suppliers.
India’s shrimp exports have been on a strong growth trajectory, with record shipments of 1.73 million tonnes worth ₹63,969 crore ($8.09 billion) in FY23. However, the 27% tariff could dampen demand, increase costs for Indian suppliers, and shift buyer preference to competing nations like Ecuador, Vietnam, and Indonesia.
Market Concerns: Shrimp Farms in Andhra Pradesh at Risk
India has over 1 lakh shrimp farms, predominantly in Andhra Pradesh, which is the hub of India’s seafood industry. The new tariff could reduce profitability for these farms, forcing businesses to either absorb costs or pass them on to American buyers, potentially making Indian shrimp less competitive in the global market.
Highlights from the Seafood Trade Impact:
US accounts for 40% of India’s shrimp exports ($2.4 billion annually).
Indian shrimp exports hit a record ₹63,969 crore ($8.09 billion) in FY23.
Andhra Pradesh hosts the majority of India’s 1 lakh shrimp farms.
Tariff hike could shift US demand to competitors like Ecuador and Vietnam.
Trump’s Justification: India Accused of “Trade Barriers and Currency Manipulation”
During the tariff announcement, Trump presented a chart showing India’s 52% tariff rate on US imports, accusing India of currency manipulation and imposing trade barriers on American products. As a result, Trump labeled the new 27% tariff as a “discounted reciprocal tariff.”
“India, very, very tough. Very, very tough. The Prime Minister just left. He’s a great friend of mine, but I said, ‘You’re a friend of mine, but you’re not treating us right.’ They charge us 52%… We charge them almost nothing, for years and years and decades,” Trump stated.
Can Indian Shrimp Exporters Adapt?
The industry now faces a critical inflection point, with companies likely to explore:
Alternative export markets – Increasing shipments to China, the EU, and Southeast Asia to reduce dependence on the US.
Price adjustments – Whether Indian exporters can absorb some of the costs or pass them on to American consumers.
Policy interventions – The Indian government may negotiate exemptions or tariff reductions to protect the industry.
For now, the seafood industry remains under pressure, and investors will closely watch developments on India-US trade negotiations to determine the sector’s outlook.
