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Buffalo meat exports likely to grow 50 Percent in Five years, says ICRA

A report from credit rating agency ICRA shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16

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Uttar Pradesh accounts for the highest share of the total buffalo population. Image Source: Wikimedia Commons
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  • A report from credit rating agency ICRA shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16
  • In the last 8 years, India’s buffalo meat exports have recorded CAGR of 29 per cent, rising from the Rs 3,533 crore-level in FY08
  • For the last two years, buffalo meat has been the highest agri-related export from India and its contribution to the total exports revenue has almost doubled to 1.56 per cent in FY16, from 0.76 per cent in FY11

Buffalo meat exports from India are likely to grow by 50 percent over the next five years, thanks to growing demand. A report from Investment Information and Credit Rating Agency of India shows that India’s annual buffalo meat exports will touch the Rs 40,000 crore mark in the next five years, compared with Rs 26,682 crore in FY16. This means compounded annual growth rate (CAGR) of 8 percent.

In the last 8 years, India’s buffalo meat exports have recorded CAGR of 29 per cent, rising from the Rs 3,533 crore-level in FY08. “While India has been exporting buffalo meat for almost two decades, the industry has gained momentum only in the last decade. This can be attributed to multiple factors like increasing demand from developing countries (like China, Vietnam, Thailand, etc), slaughtering method meeting the religious requirements of certain ethnicities, price competitiveness, high buffalo population, and low domestic consumption,” said Sabyasachi Majumdar, senior vice president — corporate sector rating, Icra.

Within India, Uttar Pradesh accounts for the highest share (28 percent) of the total buffalo population and has also emerged as the leading buffalo meat producer — housing around 60 per cent of the total standalone slaughter houses, standalone meat processing units and fully-integrated meat processing units.

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India’s buffalo meat exports account for around 20 percent of the world’s total buffalo meat/beef exports (in volume terms), making it the largest exporter, overtaking Brazil and Australia.

India by and large exports only buffalo meat, compared with other countries which primarily export beef. This growth has been driven both by volume expansion (CAGR of 13 percent) and an increase in realisations (CAGR of 13 per cent). For the last two years, buffalo meat has been the highest agri-related export from India and its contribution to the total exports revenue has almost doubled to 1.56 per cent in FY16, from 0.76 per cent in FY11.

Buffalo meat sold in tin boxes. Image Source: Wikimedia Commons
Buffalo meat sold in tin boxes. Image Source: Wikimedia Commons

The buffalo meat industry is largely unorganised and only moderately regulated. It also remains vulnerable to risks pertaining to social and political sensitivity, sustainability of buffalo population, disease outbreak and high competition from global beef industry (this was evident in FY16 when the buffalo meat exports from India declined for the first time in almost a decade as depreciation of Brazilian currency made Brazilian beef cheaper).

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Additionally, there is considerable scope for improvement in the industry infrastructure, which lags the standards of some of the major global beef exporting countries. However, the government is addressing these challenges by focusing on improving industry infrastructure through direct as well as private sector participation, the rollout of schemes to sustain the availability of buffaloes for slaughtering and developing a wider regulatory framework to ensure quality control.

“In the long term, buffalo meat exports are likely to continue to report healthy growth, driven by improving infrastructure, a sizeable buffalo population, a relatively lower price of Indian buffalo meat, and steady demand in the international market,” said Majumdar. (IANS)

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  • Kabir Chaudhary

    Buffalo meat is a commodity which is available in various countries but only the select few have the proper machinery and technique to process the meat. India is one of the leading exporter of buffalo meat around the world.

  • Kabir Chaudhary

    Buffalo meat is a commodity which is available in various countries but only the select few have the proper machinery and technique to process the meat. India is one of the leading exporter of buffalo meat around the world.

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All You Need To Know About India’s Strategic Chabahar Port

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border.

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Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons
Chabahar Port is of great international significance in terms of trade, especially for India. Wikimedia Commons

By Ruchika Verma

  • The Chabahar Port is of great strategic importance for India
  • It is in Iran and is being built and operated by India
  • This port will increase India’s trade with Central Asia and Europe

The Chabahar Port is a seaport in Chabahar, which is on the Gulf of Oman, near Iran-Pakistan border. Chabahar is the trans-shipment and logistics hub for the Makran Coast and Baluchistan province of Iran.

Chabahar Port is built and operated by India. Wikimedia Commons
Chabahar Port is built and operated by India. Wikimedia Commons

The tension between India and Pakistan is nothing new. There are several instances where both the countries have tried to obstruct each other’s political or economic agendas. This obstruction, along with other strategic reasons, resulted in the India and Iran’s deal on the Chabahar Port, which is crucial because of several reasons.

Here are few things about it you may not have known before :

  • Under the Trilateral Transit and Transport Agreement of 2016, the Chabahar port is the gateway to the Transport Corridor between India, Iran and Afghanistan, which allows multi-modal goods’ and passengers’ transport.

Also Read: India and Iran sign agreement to develop Chabahar Port

  • The agreement also states that India will develop and operate two berths in the first phase of the port. The contract is for 10 years and extendable. This time period excludes the first two years as they will be used for construction.
Chabahar Port will make India's trade with Afghanistan easier. Wikimedia Commons
Chabahar Port will make India’s trade with Afghanistan easier. Wikimedia Commons
  • The Chabahar Port’s first phase, which was developed by India, and inaugurated by Iran on 4th December 2017, is of great strategic importance as it makes it easier for India to conduct trade with Central Asia and Europe.
  • Iran’s Chabahar port is also important for India’s trade because of Pakistan’s reluctance in allowing India to send goods to Iran and Afghanistan through its land territory.

Also Read: Gwadar Port: China Turning Pakistan Port Into Regional Giant 

  • The development of Chabahar Port will increase the momentum of the International North-South Transport Corridor whose signatories include India, Afghanistan and Russia. Iran is the key gateway in this project. It will improve India’s trade with Central Asia as well as Europe.
    The Chabahar Port has also reduced Afghanistan’s dependence on the transit road, which went through Karachi. Now, trade can be conducted via Chabahar Port too. Islamabad has accused India of trying to use this development as a means to destabilise Pakistan.

    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
    The Chabar Port is the said to be the counter to the Gwadar Port. Wikimedia Commons
  • The Chabahar Port also acts as a counter to the barely 100 km away, Gwadar port in Pakistan, which is developed by China. However, Iran has defended that Chabahar is not a rival to Gwadar and Pakistan is invited to join in its development.
  • In October 2017, India sent its first shipment of wheat to through Chabahar to Afghanistan, in order to test the viability of the route.
  • India will also construct a 900-km Chabahar-Zahedan-hajigak railway line that will connect Port of Chabahar to Hajigak in Afghanistan. It will also connect Mashad in the north, providing access to Turkmenistan as well as northern Afghanistan.This project is worth $1.6 billion.

    India will supply $400 million worth of steel rails to Tehrain. Wikimedia Commons
    India will supply $400 million worth of steel rails to Tehran. Wikimedia Commons
  • It is being said that India will supply $400 million of steel rails to Tehran. There are also possibilities of setting up a fertilizer plant through a joint venture with the Iranian government.