India’s shrimp stocks are rallying hard on speculation local companies may benefit from a likely supply disruption in Ecuador, a leading exporter that’s battling a terror campaign launched by powerful narco gangs.
Avanti Feeds Ltd., the bellwether for the sector, surged 11% on Friday to close at its highest in almost two years. The stock has jumped 26% since Tuesday when the world took notice of the crisis in the Andean nation. Apex Frozen Foods Ltd. rose more than 7%, while Waterbase Ltd. rallied 12% to its highest since February 2022.
“With the ongoing political situation in Ecuador and reports of shrimp industry facing higher taxation, Indian firms have a chance to capture the supply shortfall,” he said.
The violence in Ecuador erupted when two drug kingpins escaped from prison and President Daniel Noboa, who took office in November, ordered a nationwide manhunt. The chaotic descent in the wake of organized crime organizations becoming bolder is threatening Ecuador’s industries including shrimp exports.
The US has pledged to send top military, State Department and law enforcement officials to Ecuador to offer assistance.
Source: Money Control
