India surpasses Brazil as the biggest food supplier to Arabs after 15 years

India 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 data are from the Arab-Brazilian Chamber of Commerce, obtained by Reuters this Tuesday (7).

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

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 such as 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 fruit, vegetables, sugar, grains and meat in a 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.

Between January and October of this year, sales totaled $6.78 billion, an increase of 5.5%, as logistics problems eased.

China’s effort to increase its own food stocks during the pandemic also partly affected Brazil’s trade with the Arabs, prompting countries like Saudi Arabia to intensify the promotion of domestic food production, while seeking alternative suppliers.

“It’s a turning point. The Saudis are still big buyers, but they are also net re-exporters of food,” the Chamber said in a statement.