Market News
3 min read | Updated on July 24, 2024, 15:52 IST
SUMMARY
The finance minister, in her Budget 2024-25 speech, announced that the financing for shrimp farming, processing and export will be facilitated through NABARD.
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The government has reduced the basic customs duty on shrimp to 5%
Shares of shrimp and other aquaculture companies extended their ascent on Wednesday, July 24, a day after Finance Minister Nirmala Sitharaman, in her Budget 2024-25 speech, announced measures to boost the industry. The finance minister announced that the financing for shrimp farming, processing and export will be facilitated through NABARD.
Moreover, the minister also said that the government has reduced the basic customs duty on shrimp to 5%.
The Indian shrimp market size, as per research firm IMARC Group, reached $8.3 billion in 2023 and is expected to reach $20.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.6% during 2024-2032.
Key factors driving the market growth include increasing consumer preference for protein-rich seafood, the rising popularity of shrimp-based cuisines, and numerous advancements in aquaculture practices.
The research firm says, "In India, the rising shrimp exports due to the escalating global demand for shrimp and seafood, particularly in countries like the United States, European Union, and Japan, represents the primary factor driving the market growth. Shrimp is known for its quality, competitive pricing, and compliance with international standards, making it a preferred choice in the global market.”
Furthermore, rising government support through favourable policies, subsidies, and research and development (R&D) initiatives that improves production efficiency and ensures adherence to environmental regulations is contributing to the market growth, it adds.
Expert Market Research, in its report on the industry, notes that in India, fisheries is a significant economic sector and offers vast opportunities for development. This is attributed to the diverse resources and potential of the country. Andhra Pradesh is the leading shrimp producer, accounting for more than 50% of the total output.
Thus to sum up, the long-term outlook for the shrimp industry in India looks robust and the measures announced in the latest Budget are expected to give a fillip to the sector.
Shares of the companies have been mixed on the bourses. For instance, Avanti Feeds has given nearly 82% returns in the past 12 months and 122% in the last five years. Apex Frozen Foods has gained over 38% over the one-year period and 32% in the last five years. Kings Infra Ventures stock has jumped over 63% in the past one year and 708% in the last five years. Waterbase has gained 21% in the past 12 months.
In comparison, the benchmark Nifty50 has given 24.20% return in the past one year and 117% in the last five years.
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