India has emerged as the number one food exporter to the League of Arab states for the first time in 15 years. India surpassed Brazil as the COVID-19 pandemic disrupted trade flows in 2020, according to data provided by the Arab-Brazil Chamber of Commerce, Reuters reported on Tuesday.
The pandemic rattled global logistics took a toll on Brazil’s export. The Arab world is one of the most important trade partners of Brazil.
The 22 League members last year imported 8.15 per cent of its agribusiness products from Brazil. While India has surpassed this by exporting 8.25 per cent of products to Arab League.
Despite remaining competitive “from the farm gate in,” Brazil lost ground to India and other exporters such as Turkey, the United States, France and Argentina amid a disruption of traditional shipping routes, the data said.
Brazilian shipments to Saudi Arabia take longer compared to India. The Brazil-Saudi Arabia route, which once took 30-days, could now take up to 60 days. The Chamber, however, added that India’s geographic advantages allow it to ship fruits, vegetables, sugar, grains and meat in as little as a week.
“Brazil’s agricultural exports to the Arab League rose just 1.4% by value to $8.17 billion last year. Between January and October this year, sales totaled $6.78 billion, up 5.5%, as logistics problems subsided”, Chamber data showed.
According to the report, China’s efforts to boost their own food inventories during the pandemic has also affected Brazil’s trade with the Arab league. Also, leading countries such as Saudi Arabia promoted domestic food production along with seeking alternative suppliers.
“It’s a turning point. The Saudis are still big buyers, but they are also net re-exporters of food,” the Chamber said in a statement.
