Finance Minister Nirmala Sitharaman announced on Tuesday that the Indian government will provide financial support for shrimp farming and marketing. This announcement was made during the presentation of the Union Budget for 2024-25.

Reduction in Customs Duty Sparks Stock Surge

A key highlight of Sitharaman’s announcement was the reduction of the basic customs duty on shrimp to 5 percent. This policy change has led to a notable surge in the stock prices of several major seafood firms.

On the Bombay Stock Exchange (BSE), Zeal Aqua saw its stock price jump by 9.27 percent, while Kings Infra Ventures experienced an 8.15 percent increase. Coastal Corp’s stock climbed 7.55 percent, Apex Frozen Foods 7.51 percent, and Waterbase 5.51 percent.

Additional Government Initiatives

In addition to the financial support for shrimp farming, Sitharaman revealed that the government will introduce a National Cooperation Policy aimed at the comprehensive development of the country. The policy will focus on enhancing digital public infrastructure for agriculture in collaboration with state governments. Moreover, the Jan Samarth-based Kisan Credit Card scheme is set to be launched in five states.

T Manish, a Research Analyst at SAMCO Securities, highlighted the significance of the government’s financial support for the shrimp industry. He noted that companies like Waterbase, Avanti Feeds, and Apex Frozen Foods are expected to be direct beneficiaries of this policy shift. The financial backing is anticipated to drive growth and development in shrimp production and marketing, enhancing the overall industry landscape.