Our poor govt sees Buffalo meat export as solution to India China trade deficit

New Delhi, 18 August 2013

When asked about India China trade deficit, Union Minister of Commerce and Industry Dr. D. Purandeswari in a written reply in the Rajya Sabha last week spoke about MoU with China signed in May 2013 during Chinese Premier Mr. Li Keqiang’s visit to India.

Shocked to see that the first section of MoU is about export of buffalo meat from India to China.

According to this article of WSJ India is currently the world’s largest exporter of buffalo meat selling $3.2 billion to more than 65 countries and the Chinese demand for Indian buffalo could be worth $1.5billion a year, industry experts said.

This article in beefcentral says the Chinese demand for Indian buffalo could be worth US$ 1.5 billion a year. That estimate was based on a price at or near US$3000/t (Indian buffalo meat trades at a big discount to conventional beef) which could stimulate annual trade totalling 500,000 tonnes, one report said.According to projections from Gira Consultants, Indian buffalo meat accessing the Chinese market currently totals only about 5000-7000 tonnes via the grey channel, out of total Chinese beef imports of about 340,000t in 2013.According to the US Department of Agriculture, in 2013 India will export 1.7 million tonnes of beef (including buffalo meat), 20pc above 2012 and continuing to grow.

Full text of reply by union minister on MoU with China is here:

India and China have signed MoUs /Agreements to promote Indian exports to China during the visit of Premier Mr. Li Keqiang to India in May 2013. Details are given below:

(i)MoU for the Export of Buffalo Meat from India to China entered into between the Agricultural and Processed Food Products Export Development Authority (APEDA) and the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China (AQSIQ)

(ii) MoU on Cooperation Related to Import and Export Trade of Fishery Products entered into between the Marine Products Export Development Authority (MPEDA) and AQSIQ

(iii)Agreement on Trade and Safety of Feed and Feed Ingredients entered into between the Export Inspection Council of India (EIC) and AQSIQ

(iv)MoU between the China Chamber of Commerce for Import and Export of Medicines and Health Products (CCCMHPIE)and Pharmaceuticals Export Promotion Council of India (Pharmexcil) for co-operation on Pharma.

Details of import-export and trade deficit with China during last three years are given below:-

Major items of Indian exports to China include cotton raw & yarn, non-ferrous metals, iron ore, other ores and minerals, plastic& linoleum products, spices, Dyes/intermediates, machinery & instruments and petroleum (crude& products). Major imports from China include electronic goods, machinery, organic chemicals, project goods, fertilizers, iron and steel, transport equipments, electric machinery (except electronics) and manufactures of metals.

With the implementation of the above MoUs, export of buffalo meat, and feed and feed ingredients to China are expected to benefit. With the operationalization of the MoU on co-operation on Pharma between CCCMHPIE and the Pharmexcil, Indian generic drugs are expected to get market access in China.

This information was given by the Minister of State in the Ministry of Commerce and Industry, Dr. D. Purandeswari in a written reply in the Rajya Sabha today.