Export opening for India in Russia-West stand-off

Russia’s retaliatory ban on import of meat, poultry and some other agricultural products from America and the European Union has opened an opportunity for India.

Strict quality norms and lack of government initiative restricted India’s entry into the Russian meat and poultry product market.

Now, rising inflation due to supply shortage might impel the Russian government to liberalise the quality norms to increase imports from alternative origins, including India.

Russia’s ban followed the US-EU economic sanctions announced on the Ukraine issue.

The previous year’s import of these items from America and 11 European countries were about $128 billion.

India exported only $195 million of agri products to Russia in 2013-14.

And, despite supplying 60 per cent of the world’s buffalo meat, India was absent from the Russian market.

“The sanctions offer an enormous opportunity to India to capture their (US & EU) market share. India should take initiatives and engage Russian authorities in talks,” said Ajay Sahai, director-general of the Federation of Indian Export Organisations, under the ministry of commerce.

Some years earlier, Russia was among a number of countries which had banned import of meat and poultry products from India, due to occurrence of foot and mouth disease.

While others have lifted the ban, Russia continues with it.

Interestingly, an inter-government agreement was signed between Russia, Iran, India and Oman in 2001 to establish a transport corridor and intensify economic cooperation.

But, little progress was made afterward.

According to Sahai, the Agricultural & Processed Food Products Export Development Authority has been asked to look into the matter.

Efforts to reach Sunil Kumar, in charge of meat exports at Apeda, did not elicit a response. Also, an email to Rashid Kazmi, president of the Mumbai–based All India Meat & Livestock Exporters Association did not get an answer. India exports around $4,500 mn worth of meat and poultry products annually, of which buffalo meat is 95 per cent.

“India produces the best quality meat in the world. Quality is not an issue as on today. The only thing lacking is the government’s effort to start meat export to Russia,” said a senior official of Delhi–based Mirha Exports, one of the largest shippers of buffalo meat.

Russia also faces a serious shortfall of dairy and cheese products. India exported $540 mn of dairy products in 2013-14.