SA to export pigeon peas, pork, mango to India
As part of ongoing efforts by member states to improve intra-BRICS trade, South Africa has been granted an opportunity to export pigeon peas also known as Cajanus Cajan, pork, mango, and persimmons to India. India for its part has expressed an interest to import pickled sheep skins from South Africa.
This emerged at the recent 6th Brazil, Russia, India, China and South Africa (BRICS) meeting of Agriculture Ministers in New Delhi, India, which was attended by Minister for Agriculture, Forestry and Fisheries, Senzeni Zokwana.
The seeds of pigeon peas are a common food grain in Asia, Africa, and Latin America. Pigeon pea crop which is one of the drought tolerant legume crops is consumed on a large scale mainly in South Asia and is a major source of protein for the population of that subcontinent.
India is a big consumer as well as a net importer of pigeon peas with the Free on Board (FOB) prices documented at the range from $450/ton to $ 900/ton with the average price recorded as $600 in 2015.
The Department Agriculture Forestry and Fisheries on Tuesday said the pigeon peas can be imported into India free of duty. This tariff dispensation, the department said, is a key enabler for those willing to take advantage of this trade opportunity.
“It is anticipated that South Africa will have market access opportunity to export 1,000 tonnes of pigeon peas per annum once the Memorandum of Understanding between the two countries on pigeon peas trade has been concluded, possibly in 2018,” the department said.
India has also seen an increase in the import of pork meat. Data shows that between 2010 and 2015, Indian imports of pig meat increased by an average of 11% driven mainly by demands from the hotels, restaurants, institutional sector as well as high-end retailers. The range of imported pork based products included pork belly, chops, loins, tenderloin, neck, spare ribs, bacon, ham, salami, and sausage.
It is estimated that the FOB price for processed pork is above $4.00/kg.
The department forecasted that if South Africa were to export a minimum of 100 tons from 2017 onwards, the value of pork exports will easily reach $400,000. The Custom Base Duty for processed pig meat is 30%.
With regards to mango, the department says prices during peak season can range between $12.05 and $14.55 per 20kg cartoon on average, while custom based duty for the importation of mangoes is 45%.
The department added that it will “continue to work hard to open markets for South African produce in the world and making use of relations we have in BRICS to further grow the agriculture industry in our country”.