Mumbai : The current state of the global economy is somewhat chaotic. The globe is facing unprecedented difficulties as a result of the ongoing conflict between Russia and Ukraine, declining fuel supplies, growing inflation, impending agricultural loss due to global warming, increased food insecurity, the ongoing recession, and the faltering economy of many countries. But he also mentioned some good news in the trade sector, saying, “India exports to Gulf countries mostly through shipping channels, and the United Arab Emirates is a big importer of Indian commodities and foodstuffs.” There was a lack of sufficient containers for this purpose during the previous two years. In addition, the increased demand during the epidemic from China caused a large portion of the available container stock to be used on the China route alone.
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.
