Indian seafood exporters surged as much as 11% on Wednesday following media reports 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.
A potential rise in 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%.
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, Andrews said.
Shares of shrimp exporter Avanti Feeds rose 11%, their biggest intraday gain in more than two months, topping the list of performers.
Coastal Corporation, which said in April it plans to increase exports to China, was up 5%, the most since October 24.