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(Reuters) – Coastal Corporation, a key player in India’s shrimp export market, indicated on Wednesday that a majority of its U.S. customers are prepared to accept the increased costs introduced by recent tariffs. The company is simultaneously looking to expand its export markets to include China, Russia, and Canada.
Last week, U.S. President Donald Trump enacted a 26% reciprocal tariff on goods imported from India, as part of broad tariffs imposed on various nations. This move has raised concerns about potential repercussions for trade relations and economic performance, subsequently leading to volatility in stock markets.
Coastal Corporation stated, “Ongoing engagements with our U.S. clientele indicate a strong willingness among the majority to accept heightened prices, which should keep demand robust and mitigate any immediate disruptions.”
In addition to the American market, the company has been diversifying its reach in regions such as Europe, Japan, and South Korea and is now focusing on increasing its exports to China, Russia, and Canada. This strategy aims to lessen its dependence on any single market.
According to Coastal Corp’s most recent annual report, the United States has become the largest buyer of its shrimp, significantly influencing its fiscal performance. The U.S. accounted for approximately two-thirds of India’s seafood exports, valued at $7.4 billion for the fiscal year 2024, as reported by the Marine Products Export Development Authority.
Since the announcement of the tariffs, Coastal Corp has seen its stock decline by around 14%. Meanwhile, competitors Apex Frozen Foods and Avanti Feeds have experienced drops of 6.5% and 13.4% respectively.
With a market capitalization of $27 million, Coastal Corporation reported revenues of approximately $50 million last year, marking a 23% increase compared to the previous year.
($1 = 86.5060 Indian rupees)
Source
finance.yahoo.com