India surpasses Brazil as the largest food supplier to Arabs

According to data from the Arab-Brazilian Chamber of Commerce obtained by Reuters this Tuesday, India has surpassed Brazil in food exports to the League of Arab States for the first time in 15 years, a reflection of the Covid-19 pandemic that hampered trade flows in 2020.

The Arab world is among Brazil’s most important trading partners, but Brazil’s physical distance from these markets has taken its toll; the sanitary crisis has caused a shortage of containers and hampered maritime transport, particularly affecting the movement of perishable products.

The data show that Brazil accounted for 8.15% of the total agribusiness products imported by the 22 members of the League last year, while India captured 8.25% of this trade, ending Brazil’s 15-year leadership.

Despite remaining competitive “from the gate to the inside”, Brazil has lost ground to India and other exporters like Turkey, the United States, France, and Argentina amid disruptions in traditional shipping routes.

Shipments from Brazil to Saudi Arabia, which previously took 30 days, can now take up to 60 days, according to the chamber, while India’s geographical advantages allow it to ship fruits, vegetables, sugar, grains, and meat in one week.

Agricultural exports from Brazil to the League of Arab States increased by just 1.4% in value, to US$8.17 billion last year.

Data from the chamber show that between January and October of this year, sales totaled $6.78 billion, an increase of 5.5% as logistics problems eased.

Source: Money Times

To read the full original article, visit the link: https://www.moneytimes.com.br/india-supera-brasil-como-maior-fornecedor-de-alimentos-para-arabes-apos-15-anos/

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