Avanti Feeds, Apex Frozen Foods, Coastal Corp shares in focus on Tuesday; here's why

Shares of Avanti Feeds, Apex Frozen Foods and Coastal Corp- manufacturers and exporters of shrimp feed will be in focus on Tuesday after a report said that India's seafood exporters are preparing to ship 35,000-40,000 tonnes of shrimp to the United States with orders remaining stable after US President Donald Trump paused a planned 26 per cent reciprocal tariff, reducing the duty to 10 per cent. 

"There is a lot of relief now as we are at par with other exporters to the US. Now the shipments that were held back will be processed," said K N Raghavan, Secretary General of the Seafood Exporters Association of India. Following Trump's decision on April 9, about 2,000 containers, previously delayed, are being readied for export. This temporary measure maintains a 10% blanket tariff on all countries except China, which faces a 145% duty.

Indian shrimp exports to the US face an effective customs duty of 17.7%, comprising 5.7% in countervailing duties and 1.8% in anti-dumping duties. Indian exporters normally bear these tariff costs under delivery duty-paid arrangements, meaning previously contracted shipments would have incurred significant expenses under higher tariffs. "The 90-day pause provides exporters the opportunity to fulfil these orders without the extra cost," an industry representative stated. Notably, the United States is India's largest shrimp market, despite the current effective duty levels. In the 2023-24 fiscal year, India exported shrimp worth USD 2.7 billion to the US.

As the 90-day tariff pause progresses, exporters and industry officials are advocating for strategic trade discussions to ensure favourable conditions for Indian seafood exports. Raghavan urged the government to focus on securing a "level-playing field" for the country's seafood exports during the upcoming trade talks before the tariff pause expires. This move aims to solidify competitive parity and maintain stable trade relations with the US, which is critical given India's significant stake in the American shrimp market. The current tariff scenario provides a crucial window for exporters to manage existing orders without incurring additional costs, thereby stabilising trade dynamics in the short term.