India's $30 billion buffalo meat export industry is facing challenges including increased political backlash against the industry, falling sales to key importers like Vietnam and Egypt, and a recent WHO report linking red meat to cancer risk. Exports have declined nearly 9% so far this year due to lower demand and domestic issues disrupting the industry. Right-wing Hindu activists have targeted buffalo exporters with accusations of killing cows, though buffalo meat export is legal, creating a fearful environment. While some remain optimistic that discipline in following export rules can overcome issues, others expect the industry to contract this year due to obstacles. Experts are divided on the WHO report's potential impacts in the short term versus long term on international red
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India's Rs 30,000-cr buffalo meat industry struggles with political backlash, falling sales
1. WHO Let the
Buffaloes Down?
Rs 30,000-cr buffalo meat industry's
troubles of political backlash and fall in
sales Latest WHO report adds to the `
2. Contd…
India's buffalo meat exporters, world leaders in the trade, are struggling to sustain
their momentum due to a number of obstacles including heightened political
backlash, fall in sales to traditional big buyers such as Vietnam and Egypt, and a
WHO health warning. The coun try's ` . 30,000-crore buffalo meat in dustry is like ly
to stag nate or contract this year, industry insiders say. Ex ports have declined
8.82% year on year during the April-Au gust period, according to the Agricultural
and Processed Foods Product Export Development Authority (APEDA).While the
main reason for that was a fall in demand from places such as Vietnam, the biggest
importer of red meat from India, perhaps the biggest concern for expor ters is the
political backlash against the industry.
FEAR FACTOR
With several incidents of rightwing activists attacking individuals and buffalo
industry players, accusing them of killing cows, many in the industry now work in a
state of fear, although some say the fears are exaggerated.
3. Contd…
“There are continuous political uprisings at the factories by the Hindu activists.
Transporting buffaloes for slaughter has become too difficult,“ said a buffalo meat
manufacturer, who did not want to be identified.
While India exports only buffalo meat and beef trade is banned, trade insiders
complain they are unnecessarily targeted.
“There is huge confusion about beef export and buffalo export in the country,“ a
meat exporter said.
“India exports buffalo meat, which is called bovine meat. We don't export beef as it
is not allowed. But there is unnecessarily targeting the buffalo meat exporters.“
One reason for the confusion could be that the US department of agriculture has
classified water buffalo meat as `beef '.
Increased policing is also impacting the quality of their produce, said trade insiders
who mostly spoke on condition of anonymity.
4. Contd…
DEMAND FACTOR
A section of the industry is, however, hopeful that the political factors would not
affect trade.
“As long as the exporters maintain discipline and export buffalo meat, which is
certified by the animal husbandry department of the state in which the unit is
located, there can be no problem. Beef export has never been allowed in India
since 1947,“ said Aspi Dinshaw, chief general manager at Al Kabeer Exports, one of
the largest buffalo meat exporters in the country. According to APEDA, buffalo meat
export to Vietnam de . 2,305 crore during Aprilclined to ` July from ` . 2,934 crore
during the same period last year.
WHO FACTOR
Experts are divided over the likely impact of the World Health Organisation (WHO)
report early this week that linked red meat consumption to “probably“ higher
cancer risk.
5. Contd…
Exporters said the report may not have a direct impact on their
business, at least in the short term. “People will continue to move
towards healthier eating.However, it does not mean that there will be
direct and immediate repercussions on meat consumption. There are
countries which have lived on red meat, which is their regular staple
diet,“ said Priya Sud, partner of Delhi-based AlNoor Exports.
Some industry veterans said the WHO study can prove
counterproductive in Indian markets.
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