Shares of seafood farming companies fell on Monday after the US department of commerce suggested an increase in anti-dumping duty on Indian shrimp to 2.34% from 0.84%.
Shares of seafood farming companies fell on Monday after the US department of commerce suggested an increase in anti-dumping duty on Indian shrimp to 2.34% from 0.84%. The US releases its preliminary rates in March and the final rates in September after discussions with concerned parties. Shares of Chennai-based aquaculture company Waterbase fell the most by 5.62% to Rs 258.55 on Monday. Shares of other industry players too declined with KSE Limited losing 4.9%, Avanti Feeds 3.2% and Godrej Agrovet 1.3%. However, analysts termed the sell-off as a knee-jerk reaction. “The current hike suggested by US DOC is still preliminary. Last year, the authority had suggested an anti-dumping duty rate of 1.07% in its preliminary review, but revised it down to 0.84% in its final review. Hence, there remains a possibility of the 2.34% duty levied currently being lowered during the final review in September. Even if the rate is finalised at 2.34% in the second half of the year, we do not see any major disruption in export volumes,” said Depesh Kashyap, analyst at Equirus in a report. US levies anti dumping duties on shrimp imports from India, China, Thailand and Vietnam. This preliminary review, for the period 1 Feb 2016 to 31 Jan 2017, covers 231 producers and exporters across India.