Rs 30,000-crore buffalo meat industry likely to stagnate in India this year: WHO

PUNE: 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 country’s Rs 30,000-crore buffalo meat industry is likely to stagnate or contract this year, industry insiders say. Exports have declined 8.82% year on year during the April-August 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.

“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.

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 declined to Rs 2,305 crore during April-July from Rs 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.

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 Al-Noor Exports.

Some industry veterans said the WHO study can prove counterproductive in Indian markets.