India looks to ASEAN, West Asia and Far East to arrest fall in buffalo meat exports

India’s primary share of its meat exports goes to South East Asian countries such as Malaysia and Vietnam with Egpyt falling into a close second. Exports to Egypt made for a 16 percent share of the total exports in FY23

Egypt, the second biggest importer of meat from India, is facing a currency crisis, as its private importers are unable to deal in dollars. This has forced India to diversify these exports to newer regions in West Asia and the Far East, while also seeking enhanced quotas in ASEAN countries, top government officials have told Moneycontrol.

“Egypt is our second biggest meat importer but the country is going through a forex issue. Exports to the country fell 45 percent last year and are even lower this year. We are looking at other countries in the Middle East [West Asia] and Far East regions that consume this meat,” a senior government official told Moneycontrol, on condition of anonymity.

While India already supplies buffalo meat to various countries, including Iraq, Saudi Arabia and UAE, it is exploring markets in Algeria, Bahrain, Kuwait, Lebanon and Oman to stabilise its meat exports, which have been falling year on year.

Buff exports same as a decade ago

India is currently the world’s fourth largest buffalo meat exporter, accounting for about 43 percent of the world’s production, as per the Agricultural & Processed Food Products Export Development Authority (APEDA). Of its total meat exports, which amounted to $3.1 billion in 2022-23, as much as $2.9 billion were from buffalo meat exports. Uttar Pradesh is the top buffalo meat producing state, followed by Andhra Pradesh and Maharashtra, according to APEDA.

While the primary share of India’s meat exports goes to South East Asian countries such as Malaysia and Vietnam, Egypt is a close second. Exports to Egypt accounted for 16 percent share of total buffalo meat exports in FY23.

India’s buffalo meat exports have been falling after peaking in 2014-15 when meat worth $4.8 billion was exported, making India the second-largest buffalo meat exporter after Brazil. But exports have fallen by over 35 percent from 2014-15 to 2022-23.

Buffalo meat exports stood at $3.17 billion in 2020-21, $3.2 billion in 2021-22 and $3.1 billion in 2022-23, as per trade data released by the Commerce ministry. India’s buffalo meat exports had stood at $3.2 billion a decade ago, in 2012-13, as well.

“We are seeing a further slowdown in numbers. A fall of 3 percent has been noticed in buffalo meat exports between the months of April-July as compared to last year. This is worrisome as our exports are already low from numbers we achieved in the past,” the first official cited earlier said.

Looking East

For an immediate positive outcome, New Delhi is focusing on exports to ASEAN countries, seeking to almost double its supply quota to Indonesia along with all-sector access in the Philippines, and reduced barriers in Thailand and Cambodia.

“We currently have a quota of 1 lakh tonnes in Indonesia. If it is doubled to 2 lakh tonnes, it will do us much good. As per our assessments, the country can easily accommodate 3 lakh tonnes of meat from us,” said Fauzan Alavi, Vice president, All India Meat & Livestock Exporters Association.

India is one of the largest buyers of coal and crude palm oil from Indonesia. The government is now seeking more space in the Indonesian market just as the Southeast Asian country enjoys market space here for its exports.

The government is also looking into all-sector access, which would include imports not only for processing of meat but also retail selling of raw meat directly to consumers. “With this, importers will be able to buy Indian meat directly for retail sectors, thereby helping Indian trade,” Alavi added.

The country is also looking to export buffalo meat to Thailand and its neighbour Cambodia, which currently has very high tariff and non-tariff barriers.

“Thailand and Cambodia are one of the biggest (meat) markets of the world. If we are able to negotiate market access in all these ASEAN countries, our meat exports are good to go for the next few years at least,” Alavi stated.

Arresting the Egyptian slide

Meanwhile, New Delhi is also trying to save its buffalo exports to Egypt from falling further and is in talks with that country’s government.

“The Egyptian government has already started importing our buffalo meat for its army to maintain imports from us, but private imports continue to suffer,” said the first official cited earlier.

“China, the biggest market for buffalo meat, does not allow imports of Indian meat citing fears of foot-and-mouth disease. Bangladesh, too, has stopped issuing any permits for more than a year, which has hit out exports,” the official added.

According to an April 2023 trade report by the United States Department of Agriculture, the outlook for the global meat trade is mixed this year with only chicken meat expected to record gains. Other than buffalo meat, India also exports goat as well as sheep meat, in much smaller quantities.