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| Dec 8, 2021

India surpasses Brazil as top food supplier to Arab nations

/ Our Today

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Reading Time: 2 minutes

It has taken 15 years for India to now surpass Brazil as the number one supplier of food exports to the League of Arab States.

Trade data released by the Arab-Brazil Chamber of Commerce has confirmed that India has taken over the number one spot from Brazil. This has come about due in part to the COVID-19 pandemic, which has disrupted trade flows in 2020.

The Arab world is among Brazil’s most important trade partners, but its distance from those markets took its toll as the pandemic rattled global logistics. Brazil accounted for 8.15 per cent of the total agribusiness products imported by the 22 League members last year, whereas India captured 8.25 per cent of that trade.

CHINA PUSH DIVERTS SOME OF BRAZIL’S TRADE WITH ARABS

This achievement on the part of India has ended Brazil’s 15-year advantage on its trade with the Arab nations. Brazilian shipments to Saudi Arabia that once took 30 days could now take up to 60 days, according to the Chamber.

However, with India’s geographic advantages, this has allowed 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 per cent by value to $8.17 billion last year.

According to data released by the chamber, between January and October this year, sales totaled $6.78 billion, up 5.5 per cent, as logistics problems subsided. China’s push to boost its own food inventories during the pandemic also diverted some of Brazil’s trade with the Arabs.

This has led countries such as Saudi Arabia to step up promotion of domestic food production, while seeking alternative suppliers.

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