India Surpasses Brazil To Become Top Food Supplier To Arab Nations

India has secured the position of being the top food exporter to the League of Arab States, leaving behind Brazil for the first time in 15 years.

As per reports, it was due to the COVID-19 pandemic disrupting the shipping routes in 2020. India acquired a significant advantage over Brazil, ending the South American country's over-a-decade-long advantage in exporting agricultural products.

Brazil's distance from the Arab markets adversely affected its trade to the 22-nation league.

Food Exports

Last year, Brazil held a sizeable portion of 8.15 per cent of the total agribusiness products imported to the League members. Data provided by the Arab-Brazil Chamber of Commerce to Reuters, this year, points out that India has claimed the top spot as an importer of agribusiness products, with 8.25 per cent of the total trade to the League.

Brazil also lost out to other exporters such as the United States, France, and Argentina, Turkey due to disruptions in the shipping routes. As a result of the disruptions, Brazilian shipments to Saudi Arabia that took 30 days could now take up to 60 days.

India has gained due to its geographic advantages and proximity to Brazil, which let the country ship fruits, sugar, grains, vegetables, and meat within a week. Meanwhile, China's propelled its exports further, setting back Brazil's trade with the Arabs. The increasing imports to Arab nations have prompted Saudi Arabia to promote domestic food production and look for alternative suppliers.

India As An Agricultural Produce Exporter

Brazil is already the world's largest exporter of foodstuffs like coffee and soybeans and counts itself among the leading exporters of agricultural products, with exports amounting to $55.4 billion, according to Investopedia: The South American country also leads the race as the world's biggest produce and exporter of halal meats, including beef and chicken.

However, India is offering formidable competition to these countries, continuing with its rapid pace of exporting more agricultural products to more countries. According to a report by the Economic Times, the 2019 World Trade Organisation (WTO) report stated that India ranked among the top ten agricultural produce exporters with significant exports in rice, soya beans, cotton and meat. Despite the pandemic, India's agricultural exports grew to $41.25 billion, an increase of 17.34 per cent.

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