Indian seafood stocks jump as China signals suspension of Japanese imports

Indian seafood exporters experienced a sharp rally on Wednesday (19), with some stocks rising as much as 11 per cent, after media reports suggested that China had informed Japan of plans to suspend seafood imports from the country. The potential shift in Chinese buying patterns has sparked optimism among Indian producers, who are searching for new markets amid mounting trade pressures.

China's reported move comes only months after Beijing partially relaxed restrictions on Japanese seafood. A renewed suspension would significantly affect Japanese exporters, who once relied on China for more than 20 per cent of their total seafood shipments. For Japan, which had been hoping to rebuild its share in the Chinese market, another ban could deepen the strain on its fishing industry.

For India, however, the development could provide a much-needed opening. Indian exporters have struggled in recent months under steep US tariffs up to 50 per cent imposed by the Trump administration at the end of August.

The US is traditionally India's largest seafood market, buying significant volumes through major retailers such as Walmart and Kroger. Those tariffs have already led to a nearly 9 per cent year-on-year decline in October exports to the US, according to Commerce Ministry data.

India exported a total of $7.4 billion worth of seafood globally last year, with shrimp alone accounting to 40 per cent of the basket. The reliance on a single major market has left exporters vulnerable, prompting many to diversify their global footprint actively.

Analysts say that any potential increase in Chinese demand would come at an important time for the sector. Vincent K Andrews, an equity research analyst at Geojit Financial Services, noted that companies have been under pressure to explore alternative destinations for their products.

“With the tariff issue weighing on shipments, any new opportunity is positive news for the sector,” he said. A redirection of Chinese demand could help offset some of the recent losses Indian exporters have faced.

The stock market reaction underscored this renewed optimism. Shares of Avanti Feeds surged nearly 10 per cent, marking the company’s strongest intraday performance in more than two months. Coastal Corporation rose about 5 per cent, benefiting from earlier strategic decisions.

In April, the company announced plans to expand its exports to China and other markets to reduce dependence on the United States. Those efforts now appear timely as China’s potential import shift may open new commercial channels.

The Indian government has also stepped in to cushion the impact of US tariffs. Last week, the cabinet approved a support package worth 450.6 billion rupees aimed at helping exporters in labour-intensive industries, including textiles, jewellery, and seafood, with a particular focus on shrimp processors.

This assistance is expected to help companies maintain competitiveness while they adjust to changing trade conditions.

As the global seafood trade continues to be reshaped by geopolitical developments, Indian exporters are closely monitoring the changes. Any formal confirmation from China regarding a suspension of Japanese imports could further strengthen prospects for Indian suppliers seeking to expand their market presence.