Seafood Stocks Surge as Government Extends Finance for Shrimp Farming

Shares in seafood firms rose after Finance Minister Nirmala Sitharaman announced financial support for shrimp farming in the Union Budget 2024-25. Customs duties on shrimp have been cut to 5%, causing stocks like Zeal Aqua and Kings Infra Ventures to jump significantly. A new National Cooperation Policy was also introduced.

Stocks of seafood producers soared on Tuesday following Finance Minister Nirmala Sitharaman's announcement of financial support for shrimp farming and marketing.

In her presentation of the Union Budget for 2024-25, Sitharaman revealed a reduction in the basic customs duty on shrimp to 5%, sparking widespread gains in seafood stocks. Zeal Aqua saw a 9.27% increase, Kings Infra Ventures surged 8.15%, Coastal Corp climbed 7.55%, Apex Frozen Foods rose 7.51%, and Waterbase jumped 5.51% on the BSE.

The finance minister also announced the forthcoming National Cooperation Policy for comprehensive national development and support for digital public infrastructure for agriculture in concert with state governments. Additionally, the Jan Samarth-based Kisan Credit Card scheme will launch in five states.

According to T Manish, Research Analyst at SAMCO Securities, companies like Waterbase, Avanti Feeds, and Apex Frozen Foods are direct beneficiaries of this financial extension in the shrimp sector.