Indian seafood stocks jump 20% today: Here we decode why
What's the story
Shares of leading seafood companies in India, including Apex Frozen Foods, Zeal Aqua, Avanti Feeds, Waterbase, and Coastal Corp, surged by up to 20% during today's trading session. The spike comes after the European Union (EU) approved exports from 102 more Indian marine establishments. The development is expected to significantly boost shipments to the region.
Market impact
EU's approval boosts India's seafood exports
The EU's recent approval comes at a crucial time for India's seafood industry. In FY24, India exported $1.1 billion worth of seafood to the EU, making it a key market for domestic fishing businesses. With this latest development, a total of 604 Indian establishments have now been approved by the EU, further expanding their export potential.
Industry relief
Relief for shrimp exporters amid US tariff challenges
The timing of the EU's approval is especially critical for India's shrimp industry, which has been severely impacted by recent US tariffs. The new approvals from the EU are expected to offer much-needed relief and alternative market opportunities for shrimp exporters looking to diversify their export markets. With all major seafood firms now approved for EU exports, Indian exporters will be better positioned to meet European demand across various marine product categories.
Export rankings
EU's significance as a seafood export market for India
The EU is India's second-largest seafood export market after the United States, followed by China, Japan, Vietnam, and Thailand. According to InCred Equities, India's share of shrimp imports to the US could rise to nearly 50% by the end of calendar year 2025. This would be driven by strong supply chains, competitive pricing and a recovery in production capacity.