Middle East’s huge demand for Indian agricultural product

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Devanjana Mukherjee, Khabri Media

The demand for Indian agricultural products in the Middle East is expected to increase owing to the rise in availability of quality Indian agricultural products at discounted prices.

Pic: Social Media

Seeking the Indian government’s support for imports, the UAE food industry has registered a huge demand for Indian agricultural products like basmati rice, dairy, poultry, wheat, and so on in the Middle East. They sought support for more coordination, harmonization of standards, and smooth certification processes from the Agricultural & Processed Food Products Export Development Authority (APEDA).

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They further added that high-quality packaging of the respective products would help New Delhi exporters increase exports of food and food products to countries like the United Arab Emirates (UAE), Saudi Arabia, Bahrain, Kuwait, Qatar, and the Sultanate of Oman. Commerce and Industry Minister Piyush Goyal held a detailed conference in UAE with importers hence discussing ways to grow exports from India.

Pic: Social Media

Listed below are a few major points discussed at the UAE agricultural conference.

  1. A representative of Oman-based Khimji Ramdas Group said that there is a demand for Indian basmati rice, therefore, reducing the minimum export price (MEP) to 850 USD per tonne from 1200 USD per tonne will help boost export.
  2. Global Food Industries LLC Head of Sales UAE (Frozen and Beverages) Nissar Thalangara said that there is a huge demand for frozen products as well.
  3. An importer from the Gulf Cooperation Council (GCC) raised an issue on Halal certification although India has a well-established certification system as the free trade agreement between both nations helps promote meat export.
  4. The focus on the packaging of products will help Indian exporters to increase trade with the Middle East region.

India, with large and diverse agriculture, is among the world’s leading producers of cereals, milk, sugar, fruits and vegetables, spices, eggs, and seafood products. Indian agriculture continues to be the backbone of our society and it provides livelihood to nearly 50 percent of our population.

India exports ~ 70% of its commodities and agricultural products to neighboring countries including the Middle East, Africa, and other regions in Asia Pacific, and the remaining to Europe and the Americas. In 2020, India strengthened its position as the leading rice exporter (notably, in the Middle East, contributing to ~70% of the total rice imports).

The country is currently supporting 17.84 percent of the world’s population, 15% of the livestock population with merely 2.4 percent of the world’s land and 4 percent water resources. Hence, continuous innovation and efforts towards productivity, pre & post-harvest management, processing and value-addition, use of technology, and infrastructure creation an imperative for Indian agriculture.

Recent growth rates show that agri-food production is rising faster than growth in domestic demand, and the volume of surplus for export is witnessing accelerated growth. This offers scope and opportunity for capturing overseas markets to earn foreign exchange and enable producers to earn higher prices for farm produce.

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