China had only recently eased restrictions on Japanese seafood, but a potential reinstatement of the ban would significantly impact companies seeking to regain their foothold in a market that once represented over 20% of Japan’s seafood exports.
For India, however, the shift could prove beneficial. Chinese demand may offer relief to Indian exporters facing pressure from steep U.S. tariffs, which have constrained shipments to the country’s largest market.
Major U.S. retailers, including Walmart and Kroger, are among their key clients.
India exported $7.4 billion worth of seafood globally last year, with shrimp making up 40% of total exports.
With U.S. tariffs weighing heavily, Indian firms have sought to diversify their markets, said Vincent K Andrews, equity research analyst at Geojit Financial Services. Any new opening, he noted, is a welcome development for the sector.
Shares of Indian seafood producers reacted strongly: Avanti Feeds closed nearly 10% higher, its biggest intraday gain in more than two months, while Coastal Corporation rose 5%. In April, Coastal had outlined plans to expand exports to China and other markets to reduce reliance on the United States.
The U.S., under President Donald Trump, imposed tariffs of up to 50% on Indian seafood shipments at the end of August. As a result, exports to the U.S. fell nearly 9% year-on-year in October, according to Commerce Ministry data.
To support exporters in labor-intensive industries such as textiles, jewellery, and seafood — especially shrimp — India’s cabinet last week approved a 450.6-billion-rupee spending package.
