Lure
of the east
The
Middle East can play a major role in pushing India forward in the international
markets. Dr Rajat K Baisya discusses why his trips to this region were
worth the effort
The
Middle East offers a great potential for Indian food manufacturers to
market their processed products. Fortunately, I have had several opportunities
to visit many importers of processed food and agricultural products
residing in these countries, especially those who are trading with India
on a regular basis. Their trading conditions are favourable for us for
the simple reason being that many Indians are already working there.
Though, it is the locals who invariably decide on the conclusion. Thanks
to India’s geographical proximity to Arab countries, the export
business is significantly dependent on their purchase. In fact, I have
come across several fruit and vegetable processing units, and more importantly
marine and animal products (including meat and poultry processing),
who are solely dependent on the Middle East for their business. Additionally,
these businesses are in real terms customer specific, and a sure reason
as to why our export-oriented processed food industry, heavily depends
on them for business. India trades with the Middle East in fresh foodstuff
on a regular basis. Since almost every day a chartered load of fresh
fruits, vegetables, meat, fish and poultry is dispatched from Delhi
and Mumbai, with slight development in bilateral trade relations and
promotion of business activities, this trade can go up significantly.
Our fresh food trade particularly that of fruits, vegetables, meat,
fish and poultry constitutes a large part of this export. This has immense
potential for further growth because we enjoy both, cost and freight
advantage. Very recently, in August 2004, India and the six-nation Gulf
Cooperation Council (GCC) put trade and economic ties on the fast track,
by signing a bilateral agreement in the Indian capital. India's Commerce
and Industry Minister Mr Kamal Nath and Kuwati Foreign Minister Sheikh
Mohammed Al-Sabah signed a framework agreement for economic cooperation
that could eventually lead to a free trade pact. Our bilateral trade
had also shown consistent increase, with the exports to GCC amounting
to US$ 7 billion and imports (excluding oil from GCC) amounting to US$
3.25 billion during the financial year 2003-04. A significant part of
this export is from food and agricultural products. Some of our leading
processors and exporters have operations in the Middle East with their
offices, reprocessing centres and cold storages located in strategic
places in that region. This enables them to add higher value to the
entire chain till the products reach the ultimate customers. To cite
examples, Allanas in Mumbai acquired the modern meat-processing unit
in Aurangabad, Maharashtra, and Brook Bond have their own retail outlets
in places like Dubai to sell their processed meat. Moreover, because
of geographical proximity supported by the knowledge of the local laws,
culture and practices, such easierto- manage and closely operated value
chain works to their advantage. This practice is now being followed
by many Indian processors including Lazzez. My visits to the local mandis
and souks (bazaars) in Bahrain, Kuwait and Dubai revealed that almost
the entire vegetables stocked for sales here were Indian-unloaded the
previous day at the local airport. Considering this, we are bound to
be more cost effective if a noticeable development in infrastructure
comes about. Besides, a further boost in this trade is certain, if these
developments happen. We don't have significant trade of processed and
fresh food with countries other than those in the Middle East, with
the exception of mango which is exported to
....C
O N T D
TO
READ FURTHER... SUBSCRIBE TO YOUR
COPY TODAY!!!
