Impact of US Tariffs on Indian Shrimp Exporters and Related Players

Crisil Ratings has warned that proposed 25% tariffs and additional financial penalties from the US could reduce Indian shrimp export volumes by 7–9% in FY26. With the US accounting for nearly 48% of India’s shrimp exports, this poses a major threat to exporters already under margin pressure. The combined burden of new tariffs, existing anti-dumping duties (up to 10%), and countervailing duties (5.77%) makes India one of the highest-taxed shrimp exporters in the US market—far exceeding Ecuador, the top global exporter, which faces only 10% tariff and 3–4% countervailing duties. This will squeeze operating margins by 50–100 bps, with limited ability to pass costs on due to intense competition from lower-priced Ecuadorian shrimp. Impact on Key Players: Apex Frozen Foods: As a leading shrimp processor and exporter, Apex is highly exposed to the US market. The tariff hike may erode its profit margins, particularly if it cannot shift sales to alternative markets quickly. Its credit profile could weaken unless it diversifies geographically or enhances value-added offerings. Avanti Feeds: While primarily a feed manufacturer, Avanti benefits indirectly from strong shrimp production. A decline in export volumes and profitability of shrimp farms could reduce demand for aquaculture feed. However, its diversified portfolio across poultry and fish feed may cushion the impact, especially if domestic consumption grows.