India keen to increase food exports to Russia

India has swung into action to reap economic benefits from the soured relationship between Russia and Western countries. The Commerce Ministry is in talks with the Russian Government for export of agricultural products, including fruits, vegetables, beef and dairy items, as that country has stopped sourcing these from the European Union and the US.

“There is a huge opportunity for us to export farm produce to Russia. We have started talks with the Russian Government as we are in a position to export a good part of their requirements,” a Commerce Ministry official told BusinessLine .

Last month, Russia banned import of food items from the US, EU, Canada, Norway and Australia in response to sanctions over the crisis in Ukraine. A one-year ban has been imposed on items such as beef, pork, poultry, fish, fruit, vegetables, cheese, milk and other dairy products.

Russia imported $43 billion worth food items in 2013-14, a large number of which have been covered by the ban.

India accounts for less than 1 per cent of Russia’s total imports and has been eyeing its agriculture market for long.

Quality certification issues are the major hindrance Indian food exporters have been facing in the Russian market. But, with the Russian Government eager to explore alternative markets, it might not remain a stumbling block.

“We are talking to Russia’s Federal Service for Veterinary and Phytosanitary Surveillance for quick inspection of our facilities so that we can start exporting meat and egg products,” the official said.

Encouraged by the positive response from Russia, agricultural and marine products exporters from India have decided to participate in ‘World Food Moscow’, an international festival for food exporters to be held in the Russian capital from September 15-18.

Delegations from both the Agricultural and Processed Food Products Export Development Authority and Marine Products Export Development Authority will participate, the official said.

While agriculture is an area where India can reap immediate gains, the Federation of Indian Export Organisations (FIEO) feels attempts should also be made to increase exports in areas such as pharmaceuticals, rubber goods, furniture and lighting equipment.

“We are organising a ‘Made in India’ show in Russia between September 24 and 26 to showcase India’s strength in diverse sectors,” FIEO President Rafeeque Ahmed said. Over 125 Indian firms will be participating, he added.

India’s exports to Russia contracted 6.46 per cent last fiscal to $2.15 billion, while imports declined 7.85 per cent to $3.9 billion.