India's buffalo meat exports have recovered from last year's sharp decline on reduced supplies from Brazil, the world's largest exporter.

Data compiled by the Agricultural and Processed Food Export Development Authority, showed India's buffalo meat exports at 280,853 tonnes worth $814.09 million in April-June against 269,756 tonnes worth $853.90 million in the corresponding period last year.


The unit value realisation declined from $3,165.44 a tonne in April-June 2015 to $2,898.65 a tonne during the same quarter this year.

India's buffalo meat exports to major importing countries, especially in West Asis, have gained due to the supply uncertainty in Brazil and Pakistan.

"India has raised its certified halal meat supply in the last few months. Since many export-oriented units have modernised their plants, importers have now shifted their demand from countries like Portugal, Argentina and Pakistan," said Arshad Ali Quddus, proprietor of Al Quddus Sons International, a New Delhi-based buffalo meat exporter.

India is gaining a market captured earlier by Brazil due to lower realisation by its exporters. The Brazilian real has appreciated 12 per cent against the dollar after a steep fall last year. By contrast, the Indian rupee has depreciated by 2 per cent.

Buffalo meat exports on recovery path
India's buffalo meat exports declined in volume and value in 2015-16 on a slump in demand. From 1.48 million tonnes worth $4.78 billion in 2014-15, exports fell to 1.31 million tonnes worth $4.06 billion in 2015-16.

"The recovery during April-June is likely to continue," said an exporter based in Uttar Pradesh.

Credit rating agency ICRA forecasts India's buffalo meat exports will be driven by improving infrastructure, a sizeable buffalo population, the relatively lower price of Indian buffalo meat, and steady demand in the international market. ICRA estimates buffalo meat exports will grow at an annual rate of 8 per cent to Rs 40,000 crore by 2020-21.

"While India has been exporting buffalo meat for almost two decades, this industry has only gained momentum in the last decade. This can be attributed to multiple factors, such as increasing demand from countries like China, Vietnam and Thailand, the 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 ratings, Icra.

Uttar Pradesh has 28 per cent of the country's buffalo population and is the leading buffalo meat-producing state, housing 60 per cent of standalone slaughterhouses and meat processing units.

Indian buffalo meat exports have grown at 29 per cent annually from Rs 3,533 crore in 2007-08 to Rs 26,682 crore in 2015-16, accounting for around 20 per cent of the world's total buffalo meat exports by volume.

Sources: business-standard.com