Highlights:
-
Indian seafood stocks surged after reports that China may halt seafood imports from Japan.
-
India exported $7.4 billion in seafood last year, with shrimp forming 40 per cent of the basket.
-
US tariffs of up to 50 per cent have slowed India’s seafood shipments to the American market.
-
China’s potential shift in buying patterns may bring relief to Indian seafood companies.
- Advertisement - -
Government has approved a 450.6 billion rupee support package for labor-intensive export sectors including seafood.
-
Shares of Avanti Feeds and Coastal Corporation gained sharply on expectations of redirected seafood demand.
Indian seafood exporters saw notable gains on Wednesday (19) after reports indicated that China had informed Japan of plans to suspend seafood imports from the country. The industry responded swiftly, with some Indian seafood stocks rising as much as 11 per cent. The potential redirection of Chinese buying could bring a new boost to India’s seafood sector, which has been facing external trade pressures.
China’s reported decision follows only months after it eased earlier restrictions on Japanese seafood. If China enforces a new suspension, it would significantly affect Japanese seafood exporters, who previously relied on China for over 20 per cent of total seafood shipments. For Japan, this would add further strain to a sector already working to regain ground in a competitive global seafood market.
Indian Seafood Sector Faces US Tariff Pressure and Looks for Relief
The potential shift comes at a critical moment for India’s seafood exporters. Since late August, the US has imposed tariffs of up to 50 per cent on Indian seafood, creating substantial challenges for a sector where the United States remains the largest market. Major American retailers such as Walmart and Kroger continue to be the top buyers of Indian seafood.
Commerce Ministry data shows that seafood exports to the US fell nearly 9 per cent year-on-year in October, highlighting the immediate impact of these duties. India exported a total of $7.4 billion worth of seafood last year, and shrimp alone accounted for 40 per cent of this value. Heavy reliance on a single destination has left seafood producers vulnerable, prompting efforts to diversify into more markets.
Analysts say that increased demand from China would be well-timed. Vincent K Andrews, equity research analyst at Geojit Financial Services, said, “With the tariff issue weighing on shipments, any new opportunity is positive news for the sector.” China’s shift could help offset losses Indian seafood exporters have faced due to reduced US orders and tariff constraints.
Market Reaction as Indian Seafood Firms Gain Ground
The stock market reflected renewed confidence in the Indian seafood industry. Avanti Feeds saw shares jump nearly 10 per cent, marking its strongest intraday rise in more than two months. Coastal Corporation gained around 5 per cent, benefiting from diversification plans announced earlier.
In April, Coastal Corporation outlined a strategy to expand seafood exports to China and other countries to reduce dependence on the US market. With China now expected to reduce purchases from Japan, such strategies appear to have been well-timed. Companies focused on seafood processing and exports are now preparing for possible shifts in global demand, especially in Asia.
Government Support to Strengthen India’s Seafood Export Base
To counter the impact of rising US tariffs, the Indian government recently announced a support package worth 450.6 billion rupees aimed at export-heavy, labor-intensive sectors. This includes seafood, textiles, jewelry, and shrimp processing units. The objective is to help seafood producers maintain competitiveness while global trade dynamics fluctuate.
The assistance is expected to help seafood companies absorb higher costs, sustain processing activity, and remain competitive in key international markets. Exporters have been adjusting their logistics and pricing to cope with rising trade barriers, and government support is seen as a buffer against further disruptions.
China’s Next Steps Will Shape Indian Seafood Opportunities
The global seafood trade is being reshaped by geopolitical developments, tariff decisions, and shifting supply chains. India’s seafood exporters are closely watching for formal confirmation from China about its suspension of Japanese seafood imports. If China proceeds, Indian suppliers may receive a much-needed lift at a time when diversifying beyond the US market has become essential.
For now, Indian seafood companies remain focused on expanding market access, strengthening processing capacity, and capitalizing on changing global demand. The coming weeks will determine whether China’s reported move will translate into concrete opportunities for India’s fast-growing seafood export industry.
