Avanti Feeds, Apex Frozen surge up to 17%. Why are shrimp stocks in focus?

Shrimp stocks rally amid news that trade deal talks between India and the US have gained momentum after Narendra Modi and Donald Trump expressed optimism on resolving long-standing issues.

Avanti Feeds, Apex Frozen Foods share price today

 

Shares of Avanti Feeds and Apex Frozen Foods were in focus, surging up to 17 per cent on the BSE in Wednesday’s intra-day trade amid positive developments on trade talks with the United States (US).

 

Among individual stocks, Apex Frozen Foods shares zoomed 17 per cent to ₹255.45 on the BSE in intra-day trade amid heavy volumes. Shares of Waterbase soared 13 per cent to ₹55, while Avanti Feeds shares rallied 10 per cent to ₹726. In comparison, the BSE Sensex was up 0.39 per cent at 81,420 at 09:25 AM.  READ STOCK MARKET LIVE UPDATES TODAY

 

What's driving shrimp stocks?

 

Trade deal talks between India and the US have gained momentum as both Prime Minister Narendra Modi and American President Donald Trump expressed optimism about resolving long-standing issues and concluding negotiations at the earliest.

 

Effective August 27, 2025, the United States imposed a 50 per cent reciprocal tariff on shrimp imports from India (comprising a 25 per cent base levy and a 25 per cent penalty). This is in addition to the existing antidumping duty of 2.49 per cent and countervailing duty of 5.77 per cent, raising the effective duty burden on Indian shrimp exports to 58.26 per cent.

 

The US remains India’s most significant export destination for shrimps, accounting for 48 per cent of export value and 40 per cent of export volumes in the calendar year 2024.

 

Meanwhile, according to a Times of India report, the European Union has shown green light for exports of 102 additional Indian marine establishments, offering an immediate 20 per cent increase in shipments to the bloc.

 

The development gives a major boost to the country’s seafood sector, taking the total number of approved establishments to 604. The timing is particularly significant for India’s shrimp sector, one of the hardest hit by recent US tariff measures. The EU’s new approvals are expected to offer relief and alternative markets for shrimp exporters seeking diversification, the report suggested.

 

Shrimp Sector outlook

 

The imposition of trade duties presents a significant challenge for the Indian shrimp industry, prompting exporters to diversify into alternative markets. However, India’s competitive advantage lies in its operational efficiency, particularly in processing and value addition. Unlike competing nations that primarily export raw shrimp to the U.S., India has established a strong foothold in the processed and value-added segments, according to CARE Edge Ratings.

 

The first half of the year 2025 has been a good profitable period. However, the forecast for the second half of this year is challenging due to factors like gradual increase of raw material prices and levy of the reciprocal tariff by the US at the rate of 50 per cent, which will have a significant impact on the performance of the company, particularly the second season, Avanti Feeds said in its Q1FY26 earnings conference call.

 

In general, FY25-26 is expected to be a mix of favourable and challenging seasons for the aquaculture industry, both in respect of shrimp production as well as exports from India and global demand for shrimp exports, the company said.

 

The focus is on demand for value-added products, which is gradually increasing and processes see better margins in value-added products and the company is also focusing more on value-added products to get better margins, where the company is working with this objective to maintain the better margins, the management said.

 

As the aquaculture industry consolidates, Avanti is positioned to capitalize on emerging opportunities.  India’s aquaculture sector is at an inflection point. Backed by the Government’s Pradhan Mantri Matsya Sampada Yojana (PMMSY), the sector is poised to achieve 22 million MT of seafood production by FY26. With infrastructure expansion, inland fisheries support, and rising domestic seafood consumption, Avanti Feeds said it is well placed to ride this wave of opportunity.