RIO DE JANEIRO, BRAZIL – India has overtaken 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 disrupted trade flows in 2020. The data are from the Arab-Brazilian Chamber of Commerce, obtained by Reuters on Tuesday (7).
The Arab world is among Brazil’s most important trade partners. Still, the distance from these markets took its toll, as the health crisis caused a shortage of containers and hampered shipping, significantly affecting the movement of perishable goods.
Brazil accounted for 8.15% of the total agribusiness products imported by the 22 League members last year, while India captured 8.25% of that trade, ending Brazil’s 15-year lead.
Despite remaining competitive “from the gate inward,” Brazil has lost ground to India and other exporters such as Turkey, the United States, France, and Argentina amid disruptions in traditional shipping lanes.
Brazil’s shipments to Saudi Arabia, which once took 30 days, can now take up to 60 days, according to the Chamber, while India’s geographical advantages allow it to ship fruits, vegetables, sugar, grains, and meats in a week.
Brazil’s agricultural exports to the Arab League increased only 1.4% in value, to US$8.17 billion last year.
Between January and October this year, sales totaled US$6.78 billion, an increase of 5.5 percent, as logistical problems eased.
China’s effort to increase its food stocks during the pandemic also partly affected Brazil’s trade with the Arabs, leading countries like Saudi Arabia to promote domestic food production while seeking alternative suppliers.
“It’s a turning point. The Saudis are still major buyers, but they are also already net re-exporters of food,” the Chamber said in a statement.