At a time when the global financial meltdown has drastically impacted India?s key exports like textile, gems and jewellery and other related sectors, the agricultural and processed food products export sector is expected to escape ?unhurt?.
However, in case of exports of food products , the real worry is not the global economic slowdown but factors like frequent occurrences of bird flu in the poultry sector and significant appreciation of rupee against the US dollar.
Besides, several importing countries have their own set of quality standards which poses obstacles in augmenting exports.
Although the latest data on exports are yet to be compiled, a senior official with Agricultural and Processed Food Products Export Development Authority (APEDA) has indicated that besides sectors like bovine meat and poultry products, there is no ?visible impact? of a global slowdown at present.
?We are constantly monitoring the situation, the exports are expected to grow as per our target during the current fiscal,? Asit Tripathy, Chairman, APEDA told FE. He also said that a large chunk of processed food exports is to Gulf countries which have been relatively unaffected by the financial meltdown.
The country, which exported close to Rs 29,000 crore worth of agricultural and processed food items like buffalo meat, fruits and vegetables, pulses, basmati rice, among others during 2007-08, is expected to grow at least around 10% during the current fiscal.
?Being an essential commodities, we do not expect drastic drop in demand of these products,? he said.
According to APEDA data, during April- July 2008, the country has notched up agri exports worth of Rs 12,300 crore.
The exports of agri food products during 2007-08 went to up to Rs 28,906 crore against Rs 21,150 crore achieved during the previous year, a sharp rise of more than 40%.
However India?s, share in the global trade of agri processed products is only about 1.6 %. Only 15 countries including Saudi Arabia, United Arab Emirates, United Kingdom, Bangladesh and South Africa account for more than 63% of the country?s export of fruits, vegetables and other agri products.
Many to Gulf countries have already put poultry imports from India under ?watchful? list. ?Due to bird flu incidents, the country?s growing buffalo (bovine) meat exports could be impacted as countries would put more stringent safety norms prior to import,? Tripathy said. The country?s buffalo meat exports, mostly to Malaysia, Philippines, Mauritius and Gulf countries, have increased from Rs 3,211crore during 2006-7 to around Rs 5,000 crore in the previous fiscal.