Indian seafood exporters surged as much as 11% on Wednesday following media report that China had notified Japan of plans to suspend imports from the country, a move that could shift demand toward alternative suppliers such as India.
Beijing just months ago partially eased restrictions on Japanese seafood. However, the potential renewal on the ban could deal a sharp blow to companies hoping to regain access to a market that once accounted for more than 20% of Japan’s seafood exports.
On the flip side, a potential rise in Chinese demand could offer a lifeline to Indian seafood exporters squeezed by steep tariffs imposed by the United States, the country’s biggest market, with clients including major retailers such as Walmart and Kroger.
Total seafood exports from India globally stood at $7.4 billion last year, with shrimp accounting for 40%.
China to suspend imports of Japanese seafood amid diplomatic dispute, media reports
With the tariff issue weighing on shipments, companies have been looking to diversify their export markets, said Vincent K Andrews, equity research analyst at Geojit Financial Services. Any new opportunity is positive news for the sector, he added.
Shares of Avanti Feeds closed up about 10%, its biggest intraday gain in more than two months. Coastal Corporation climbed 5%. The company had announced plans in April to boost exports to China and others as part of a strategy to reduce reliance on the U.S. market.
At the end of August, the U.S. administration under President Donald Trump had imposed tariffs of up to 50% on Indian shipments.
That led to a nearly 9% year-on-year fall in exports to the U.S. in October, according to data from the Commerce Ministry.
Last week, India’s cabinet approved a spending package of 450.6 billion rupees to support exporters in labour-intensive sectors such as textiles, jewellery, and seafood, particularly shrimp.
Comments
Comments are closed for this article.