India Is No.1 Food Supplier To Arab Nations After 15 Years

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The Arab world is one of Brazil’s most important trading partners.

Sao Paulo:

According to information given to Reuters by the Arab-Brazil Chamber of Commerce on Tuesday, India surpassed Brazil in food exports to Arab states for the first time in 15 years due to the COVID-19 epidemic disrupting trade flows in 2020.

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The Arab world is one of Brazil’s most important trading partners, but its distance from these markets has been affected by the epidemic, which has disrupted global logistics.

Data show that Brazil accounted for 8.15% of the total agribusiness imports made by 22 League members last year, while India accounted for 8.25% of that trade, ending Brazil’s 15-year advantage.

Despite being competitive “from the farm gate”, Brazil has lost ground to other exporters such as India and Turkey, the United States, France and Argentina amid disruptions to traditional shipping routes.

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According to the chamber, shipments from Brazil to Saudi Arabia, which once took 30 days, can now take up to 60 days, where India’s geographical advantages allow it to ship fruits, vegetables, sugar, grains and meat in less than a week.

Brazil’s agricultural exports to the Arab League rose just 1.4% last year to ৭ 6.18 billion. Between January and October this year, sales totaled $ 6.78 billion, an increase of 5.5% due to a reduction in logistics problems, Chamber data showed.

Pressure to increase China’s own food inventory during the epidemic has also eroded some of Brazil’s trade with Arabs, with leading countries such as Saudi Arabia boosting domestic food production as it seeks alternative suppliers.

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“This is a turning point. The Saudis are still big buyers, but they are also food exporters,” the chamber said in a statement.

(Except for the title, this story was not edited by NDTV staff and was published from a syndicated feed.)

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