As the COVID-19 outbreak interrupted economic flows in 2020, India overtook Brazil in food exports to the United Arab Emirates for the first time in 15 years.
According to data given to Reuters by the Arab-Brazil Chamber of Commerce, Brazil accounted for 8.15 percent of all agriculture goods imported by the 22 League members last year, while India took 8.25 percent, ending Brazil's 15-year lead. Despite being competitive "from the farm gate in," Brazil had lost momentum to India and other exporters like Turkey, the United States, France, and Argentina as old shipping routes have been disrupted.
According to the UAE Chamber of Commerce, Brazilian exports to Saudi Arabia might now take up to 60 days, but India's geographic advantages allow it to send fruits, vegetables, sugar, grains, and meat in as little as a week.
By sea, India is only 1936.04 km away from the UAE, however, Brazil is 11827.07 km away. Last year, Brazil's agricultural exports to the Arab League increased by only 1.4 percent in value to $8.17 billion. According to Chamber figures, sales increased by 5.5 percent from January to October this year, reaching $6.78 billion, as logistics issues faded.
During the epidemic, China's attempt to build its own food stockpiles diverted part of Brazil's commerce with the Arabs, prompting nations like Saudi Arabia to promote domestic food production while looking for alternate suppliers. Although this increase in exports to UAE from India does count as a small victory for India, however, it also showcases how much the global supply chain has been disrupted due to covid.
Like Brazil is suffering in far off markets India might also be suffering in markets further away from its geographical locations. Hence it’s imperative for countries to actually look for closer markets to export their food.
Source: Reuters
