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Mumbai: The current global economic scenario displays a mixed pattern. Due to the Russia-Ukraine war, depleting fuel supply, rising inflation, impending agricultural loss as a result of global warming, food insecurity, recession and struggling economies of many countries, the world is passing through challenges never seen before. But at the same time, Referring to some recent positive developments in the import-export field, he said, “India exports to Gulf countries mainly through shipping routes and UAE is a prominent importer of Indian goods and foodstuffs.
The containers required for this were not available in adequate numbers for the last 2 years. Besides, a major part of the available container stock was being utilised on the China route alone owing to the increase in demand during the pandemic period from that country.”
This resulted in the freight rate touching a whopping high of 1100 USD per 20 feet container last November. The high freight rates caused price rises of all commodities and the retail customers were facing the brunt of inflation. Now the situation is returning to normal and the supply of containers has also increased.
The rising prices of imported commodities in Dubai have come down by 10-12%. The freight rates are likely to be down to a level of 150-175 USD per container resulting in decreasing the prices of commodities by 20%. It will be a great relief to the customers from Gulf countries. India can take advantage of the situation by increasing her commodity export.”
Masala King Dr. Dhananjay Datar, CMD, Al Adil Trading Co. L.L.C. further said, “Recently, Dirham, the currency of UAE, has strengthened compared to the currencies of India, Pakistan, UK and European countries. This will also help to deflate imports in Dubai. India and Pakistan are 2 major sources for the import of food commodities like rice, spices, dry fruits, vegetables and other grocery products. The satisfactory monsoon this year will be an opportunity for India to take a lead in the export of agricultural products.
The mellowing war situation on the Russian-Ukraine front will lead to resuming the trade from both countries to the world. Since Ukraine is a major exporter of wheat, cooking oil and pulses, the resumed trade is expected to change the prices of these commodities back to normal. But a major concern is about rice production and its prices in the near future. Since the torrential rain this season has devastated the crop in some major rice grower countries from South Asia, the production, supply and prices can’t be estimated right now.”
“The exchange rate of Indian Rupee to USD is largely stable. Still a marginal decline in value of Rupee can benefit the Indians aspiring to shift abroad for a job. After the pandemic the demand for a skilled workforce is rising again and Indians can take advantage of it by demanding attractive salary packages abroad. In all there are opportunities in challenging periods too. India should take advantage of them,” Dr. Datar.