Shares of companies that export shrimps and aqua feeds exports have shown a decline. Indeed, in the initial review of the import duty, the US commerce ministry has indicated to impose more import duty on Indian prawns. However, due to the improved working profitability of companies and rising demand for shrimp in the US, there is no chief impact on Indian exports.
America is the largest market for Indian seafood exporters. In the initial review of the import duty, the American authorities have indicated that the duty on frozen shrimp imported from India has been raised from 0.84% to 2.34%. Ramakant Akula, Chief Executive Officer, India’s Big Prawn Company, Waterbase Limited said, “There is no need to pay much attention to this. In the US, import duty is evaluated every year. It is an initial review, actual charges can be reduced.”
Last year, the US government had at the start planned to impose 1.07% duty on shrimp coming from India but it was finally converted to 0.84%. Akula says, “About 70% of prawns in the US are met by imports and India is its biggest and most trusted exporter.” Waterbase makes fodder for prawns and produces processed shrimp. In the current fiscal, the company has declared a turnaround in its business. In the first nine months of the current fiscal, the company’s net profit has tripled on an annual basis to Rs 7.4 Million.
In America, the shrimp comes from outside sources; around 60% of seafood comes from India. In this, the reduction in the number of other countries in the US will be decided according to the import duty. India, Vietnam, and Thailand are big global exporters of shrimp; the US has imported duty imports of 25.3% on shrimp imports from Vietnam, while the import duty imposed on Thailand shrimps from Thailand has not been announced yet.