Surge in Seafood Stocks as Government Backs Shrimp Farming

Seafood producer and exporter stocks climbed following the announcement by Finance Minister Nirmala Sitharaman of government financial support for shrimp farming. The Union Budget for 2024-25 includes a reduction in the basic customs duty on shrimp to 5 percent. Stocks like Zeal Aqua and Apex Frozen Foods saw notable gains.

Shares of seafood producers and exporters surged on Tuesday after Finance Minister Nirmala Sitharaman announced financial support for shrimp farming and marketing.

In the Union Budget for 2024-25, Sitharaman revealed a reduction in the basic customs duty on shrimp to 5 percent.

Zeal Aqua's stock soared by 9.75 percent, Apex Frozen Foods rallied by 3.07 percent, Waterbase climbed by 2.33 percent, Coastal Corp rose by 2.28 percent, and Kings Infra Ventures ended 1.01 percent higher on the BSE.

In intra-day trading, Zeal Aqua zoomed by 9.98 percent, Kings Infra Ventures shot up by 8.15 percent, Coastal Corp climbed by 7.55 percent, Apex Frozen Foods jumped by 7.51 percent, and Waterbase soared by 6.89 percent.

The finance minister also announced a National Cooperation Policy and a digital public infrastructure initiative for agriculture in collaboration with states. Additionally, the Jan Samarth-based Kisan Credit Card scheme will be introduced in five states. These measures aim to promote the overall development of the country.

T Manish, Research Analyst at SAMCO Securities, said, ''Finance Minister Nirmala Sitharaman has extended finance to shrimp production and marketing for the overall development of the industry. Direct beneficiaries of this announcement include Waterbase, Avanti Feeds, and Apex Frozen Foods.''