Food Trade Between Eu and India
Food Trade between EU and INDIA
Introduction: - Over the last few years, India is increasing its export on organic food. The farmers are adopting organic farming. Due to the low consumption of such organic food on domestic level, the prime market for such Indian organic food lies in Europe. Now days, India has become largest and leading supplier of organic species, basmati and herbs etc. According to the report of RCNOS on “FOOD processing market in India (2005)” – India exports amount to 53% of their organic food. If we compare it with other agricultural products, this amount of export is considerably very high. The prices of organic food are 30% higher than other non organic food. Due to such high cost, the domestic market is unable to consume entire organic food produced in the country. Thus, the main objective of organic farmers and government is to export it to EU. These organic foods are accepted in European markets.
Trade relation between EU and India with respect to Food:-
According to the statistical office of EU, the trade between EU and India has been increased in several numbers of ways over last many years especially in food. When goods are produced in India, their cost is less, so it creates pressure on EU companies to cut their prices, because of competition in market. So it increases competition between EU and Indian companies. These days’ Indian people have adopted western fast food, thus increasing the food trade between EU and India over last few years. In 2000, EU exported food and drinking products in 57 million euro to India. In 2010, this rate was increased to five times. The export was around 263 million euro in food and drinking products. From 2006-2012, the trade increased from 1207 million euro to 1471 million euro. So the trade for food between India and EU is increasing every year,
Introduction: - Over the last few years, India is increasing its export on organic food. The farmers are adopting organic farming. Due to the low consumption of such organic food on domestic level, the prime market for such Indian organic food lies in Europe. Now days, India has become largest and leading supplier of organic species, basmati and herbs etc. According to the report of RCNOS on “FOOD processing market in India (2005)” – India exports amount to 53% of their organic food. If we compare it with other agricultural products, this amount of export is considerably very high. The prices of organic food are 30% higher than other non organic food. Due to such high cost, the domestic market is unable to consume entire organic food produced in the country. Thus, the main objective of organic farmers and government is to export it to EU. These organic foods are accepted in European markets.
Trade relation between EU and India with respect to Food:-
According to the statistical office of EU, the trade between EU and India has been increased in several numbers of ways over last many years especially in food. When goods are produced in India, their cost is less, so it creates pressure on EU companies to cut their prices, because of competition in market. So it increases competition between EU and Indian companies. These days’ Indian people have adopted western fast food, thus increasing the food trade between EU and India over last few years. In 2000, EU exported food and drinking products in 57 million euro to India. In 2010, this rate was increased to five times. The export was around 263 million euro in food and drinking products. From 2006-2012, the trade increased from 1207 million euro to 1471 million euro. So the trade for food between India and EU is increasing every year,
Bibliography: - http://articles.economictimes.indiatimes.com/2007-11-28/news/28488341_1_india-and-eu-largest-exporter-largest-importer http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/india/ Indian Institute of Management Bangalore, India- working paper no- 392, EU-India migration & trade lingages.