 "Apex Frozen, Waterbase, Avanti Feeds soar up to 20% on THIS Budget proposal")
Shrimp shares, Avanti Feeds in focus: Shares of shrimp and seafood selling companies rallied up to 20 per cent on the BSE in Wednesday's intraday trade aided by heavy volumes, in an otherwise weak market, after Finance Minister Nirmala Sitharaman announced a proposal to provide finance for shrimp farming and marketing.
Waterbase share price zoomed 20 per cent to Rs 102.18 on the back of over eight-fold jump in average trading volumes. Till 10:08 AM, as many as 1.4 million shares had changed hands on the BSE as compared to around 0.18 million shares being traded, on average, in the past two weeks.
Share price of Apex Frozen Foods, meanwhile, surged 18 per cent to Rs 306.95 on the back of two-fold jump in trading volumes. Avanti Feeds, too, gained 12 per cent to Rs 723.25, Mukka Proteins soared 10 per cent to Rs 54.71, Kings Infra Ventures (7 per cent at Rs 189), Godrej Agrovet (6 per cent to Rs 874), and Sharat Industries (5 per cent at Rs 49.19) in the intraday trade. In comparison, the BSE Sensex was down 0.15 per cent at 80,304.
Presenting the Union Budget for 2024-25, FM Sitharaman said that the financial support for setting up a network of Nucleus Breeding Centres for Shrimp Broodstocks will be provided. Financing for shrimp farming, processing, and export will be facilitated through NABARD.
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"India’s seafood exports in the last financial year touched an all-time high of more than Rs 60,000 crore. Frozen shrimp accounted for about two-thirds of these exports. To enhance their competitiveness, I propose to reduce BCD (basic customs duty) on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. I also propose to exempt customs duty on various inputs for manufacture of shrimp and fish feed," she said while announcing the Union Budget for 2024-25 (FY25).
Meanwhile, world fisheries and aquaculture production is near all-time high, with aquaculture production of aquatic animals surpassing capture fisheries for the first time, according to a new report from the Food and Agriculture Organization of the United Nations (FAO).
The aquaculture market size is expected to see a strong growth in the next few years. It will grow to $340.3 billion in 2028 at a compounded annual growth rate (CAGR) of 6.5 per cent. Forecasted growth is driven by increased seafood demand, a health-conscious consumer base, rising fish oil demand, and global population growth combined with urbanisation.
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"The Indian aquaculture sector is poised to grow in the financial year 2024-25 with the Union government announcing a slew of measures in its interim budget presented in February. Accordingly, under the PMMSY (Pradhan Mantri Matsya Sampada Yojana), the government aims to double the aquaculture exports to nearly rupees one lakh crore and generate over 5 million job opportunities," Avanti Feeds had said in its FY24 annual report.
Andhra Pradesh accounts for approximately 75-85 per cent of India’s shrimp production. While other states such as Odisha, West Bengal, and Gujarat, have expanded production over the past decade and still have great potential, it has become clear that producers outside AP struggle to compete under the current market conditions. The main reasons are AP offers relatively low electricity, PL, and feed costs.
Avanti Feeds is a pioneer in the Indian Shrimp Industry having over three decades of operations. The company has a strong and long lasting collaboration with Thai Union, a multi- national company in the Global Seafood Industry. The Company is in constant interaction with Thai Union in exchange for developments in the Aquaculture industry, bringing into India and to the door step of the Indian farmer to reap the best results in Aquaculture, the company said.