Indian food exports to the League of Arab States surpassed Brazilian exports for the first time in 15 years. While the Arab world is Brazil’s most important trade partner, its distance from those markets impacted logistics during the pandemic. Learn import export online and start your import export business. The imported agribusiness products by the 22 members of the League in last year were accounted for by Brazil at 8.15%, while India captured 8.25% of the trade during the same period. The Arab world is among Brazil’s most important trade partners, but Brazil’s distance from those markets took a toll. Brazilian shipments to Saudi Arabia previously took 30 days could now take as long as 60 days due to the pandemic.
Why Brazil Lags Behind-
- During the COVID epidemic, the distance between Arab countries and Brazil affected global logistics services. As a result, Brazil lags behind India when it comes to food exports.
- Brazil has also lagged behind in this area due to China’s increased food inventory during the pandemic. Because of this, the trade of Brazil has also suffered.
- In spite of pandemic-related global supply chain disruptions, India had an advantage in quickly shipping food products to the Arab states.
- India has geographic advantages that allow it to ship fruits, vegetables, sugar, grains, and meat within weeks.
- Despite the country’s overall exports dropping by over 7%, India’s agriculture exports increased sharply by nearly 25% in 2020-21 over the previous year.
The Saudis are still the biggest buyer, but they are also the biggest re-exporters of food.
Conclusion-
A disruption of traditional shipping routes resulted in Brazil losing market share to other exporters such as Turkey, the U.S., France, and Argentina as well. Agri-food exports are still one of Saudi Arabia’s largest exports, but the kingdom is also working hard to boost its domestic food production. If you are interested in international business connect with import and export training courses and give a fresh and energetic start to your business. You can also join our live free webinar. To attend the webinar, click on the link given below. https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do visit our website.
