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Indian seafood stocks climbed by as much as 11% on Wednesday after media reports said China had informed Japan of its intention to halt seafood imports, a development that could redirect demand to suppliers like India.
Such a shift could prove beneficial for Indian seafood exporters, who have been under pressure due to steep US tariffs. The United States remains India’s largest seafood market, supplying major retail chains including Walmart and Kroger.
India’s total seafood exports reached $7.4 billion last year, with shrimp contributing 40% of the value.
With higher tariffs affecting outbound shipments, exporters have been exploring new markets, according to Vincent K Andrews, equity research analyst at Geojit Financial Services. He said any fresh demand prospects would be encouraging for the industry.
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.
China–Japan tensions deepen amid diplomatic row
Chinese authorities are expected to halt imports of Japanese seafood, Tokyo-based media outlets reported on Wednesday, as tensions escalate over remarks related to Taiwan. Neither Beijing nor Tokyo has officially acknowledged such a decision.
The two countries are now embroiled in their most serious diplomatic dispute since 2012, following comments made on November 7 by newly appointed Prime Minister Sanae Takaichi, who indicated that Japan might consider military involvement if Taiwan were attacked.
Beijing, which considers Taiwan part of its territory, reacted strongly, summoning Japan’s ambassador and issuing an advisory urging Chinese citizens to avoid travelling to Japan.
Chinese state media also reported that the release of at least two Japanese films would be delayed in China.
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View AllReports of a seafood import suspension came from Japanese outlets including public broadcaster NHK, which quoted unnamed government officials.
According to NHK, China justified the potential halt as a precaution linked to monitoring the discharge of treated wastewater from the damaged Fukushima nuclear plant.
China had only recently resumed limited imports of Japanese marine products after imposing a previous ban when the Fukushima water release process began in 2023.
With inputs from agencies