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%.
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 US market.
At the end of August, the US 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 US in October, according to data from the Commerce Ministry.
Last week, India’s cabinet approved a spending package of ₹450.6 billion to support exporters in labour-intensive sectors such as textiles, jewellery, and seafood, particularly shrimp.
