India’s buffalo meat exports, India’s second highest in the agro-commodity export basket, which netted $3.6 billion in 2018-19, is a major segment suffering most from the lockdown. Since February its exports were languishing and now for quite some time, availability of livestock is becoming a big issue, hitting overseas sales further. However, buffalo meat exporters now are hoping to wriggle out of the covid-19 lockdown slump and regain some lost momentum by June end.
During the over two-month-long lockdown, the exporters have estimated the “loss of opportunities” to the tune of nearly Rs 5,300 crore. Buffalo meat had been number one item in the agro-commodity basket administered by the Agriculture Produce Exports Development Authority (APEDA) till FY17 in terms of value but afterwards it became number tow with basmati rice picking momentum.
“The lockdown was unprecedented and impacted all the industries across board. However, now meat exporting units are slowly opening up,” All India Meat and Livestock Exporters Association (AIMLEA) spokesperson Fauzan Alavi told. He is also the director of Allana Sons, which is among the country’s leading buffalo meat exporters.
While he expected buffalo meat shipments to regain 50 per cent of the normal business by June 2020, the industry would come back to normal progressively in the coming 2-3 months, he added.
As of now, with livestock or animals not available with most producers, old stock from cold storage is being exported.
Fauzan Alavi said that government is most supportive and assured all clarities will come soon and government will provide all relevant support.
Last year, the buffalo meat exports from India stood at about 1.23 million tonnes (MT) and valued at more than $3.609 billion, compared to 1.35 MT and $4.03 billion respectively during 2017-18 fiscal year, according to central government agency APEDA. Till January 2020, the corresponding figures for 2019-20 stood at 1.083 Million Tonnes and $3.011 billion respectively. (See table)
The country’s buffalo exports had hit the wall after buyers in the prime destinations based in the Gulf and the South East Asian countries accounting for nearly 2/3rd of the total meat export basket, stopped placing fresh orders following the covid-19 pandemic.
“However, the biggest challenge facing us now is the lack of clarity regarding the resumption of the livestock markets in the states. Unless the livestock markets are operational, our value and supply chains would remain incomplete,” Alavi added.
Besides, most of the big exporters have their corporate offices based out of the financial capital of Mumbai, due to the vicinity of the seaport, are still shut.
“Although, the manufacturing plants of the meat exporters could be located elsewhere, yet the key functions of finance, payroll, marketing, logistics, shipping etc are operationalised from their respective Mumbai offices, which are closed due to the lockdown,” he lamented.
At the same time, the issue of the flight of labour to their native states over the past few months is also staring at the export firms at a time when they are looking to resume normal operations in the coming weeks.
Meanwhile, he claimed the export payments were also stuck like in the case of other industries. “During the lockdown period, the exports were literally down to zero and the companies could barely manage to sell their exiting stocks,” Alavi informed.
“We are awaiting guidelines from the Centre regarding the livestock markets to facilitate an early resumption of operations. This would also provide ready cash to the farmers in the current circumstances,” he said adding the Association was in touch with the ministry of animal husbandry in this regard.
Source: Business Standard
