Indian seafood exporters surged as much as 11 per cent 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 per cent.
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 per cent, 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 five per cent, the most since October 24.
(Reporting by Urvi Dugar and Ananta Agarwal in Bengaluru; Editing by Shilpi Majumdar)
