Shares of Avanti Feeds and Apex Frozen Foods locked in the 20% upper circuit in trade after optimism surged around the India–US trade deal, which significantly reduces tariff pressure on Indian shrimp exports to the US market.
The easing of tariff rates from 50% to 18% is expected to restore a meaningful portion of the competitiveness that Indian shrimp exporters had lost over the past few quarters. Elevated duties had earlier weighed heavily on export volumes and margins, leading to subdued earnings visibility for seafood exporters focused on the US.
With lower tariffs now in place, companies that were grappling with volume contraction and margin stress are likely to see gradual relief. Improved pricing competitiveness should support better order flows, helping exporters stabilise revenues and recover operating margins over the coming quarters.
The tariff rollback is also expected to ease concerns around inventory build-up and working capital stress, which had intensified due to slower offtake from US buyers. As demand normalises, exporters are positioned to claw back lost market share in the US, improving capacity utilisation and cash flow visibility.
The US continues to be India’s most critical market for frozen shrimp, accounting for 41% of total export volumes and 48% of export value in FY25. India exports nearly 250,000 metric tonnes of seafood to the US annually, with shipments valued at around $2.5 billion. Given this heavy exposure, even a moderate reduction in tariff rates has a material positive impact on the sector’s outlook.
