US trade deal or not, Avanti Feeds needs a wider export net

The stock of Avanti Feeds Ltd, one of India’s largest shrimp exporters, saw a relief rally after commerce and industry minister Piyush Goyal hinted at reaching a fair and balanced trade deal with the US.

- Anarya Roy

It has risen more than 10% since the positive news on Tuesday.

Following US President Donald Trump’s tariff tantrum, the stock had corrected 35% since the reciprocal tariff saga started in April. India exports $3 billion worth of shrimp annually, 48% of which goes to the US. Avanti Feeds exports to the US stood at 72% of its total processed shrimp sales in HIFY26.

The oft-quoted “fall” (autumn) deadline for the US-India trade deal is approaching. A favourable deal would take the pressure off Avanti Feeds and improve its earnings trajectory.

Its exports to the US have been weighed down by 58% tariffs. Amid this, China's retaliatory ban on Japanese seafood following Japan’s statements on Taiwan, could bode well for India’s shrimp exporters if they manage to fill the gap left behind by Japan.