Brexit effect: Indian lady’s finger may go missing from British platter.

PUNE: Indian bhindi is an increasingly popular 'exotic' vegetable in multi culti Britain. It is also a vegetable whose exports from India have consistently grown brining good returns to farmers. However, exporters now fear a decline in demand for Indian vegetables like baby corn, chillies etc from non-Indians in UK, as the local food is likely to become expensive due to exchange rate related issues after Brexit.

Traders and exporters say that during periods of economic uncertainties, demand for exotic and organic food declines. The South Asian community would buy it irrespective of the prices, but those who experiment with it may not do so, say exporters. Indian mangoes, pomegranates, vegetables like bhindi or lady's finger, which blend in with cuisine of many nationalities, along with baby corn and chilies are some of the important Indian vegetables exported to the UK.

"The exchange rate vis-a-vis the pound is likely to have long term implications. Food prices in UK would go up. This will invariably lead to drop in demand for exotic vegetables and fruits. Higher selling prices would also lead to a fall in sales," said Kaushal Khakhar, CEO, Kay Bee Exports. In 2014-15, India exported fruits and vegetables worth Rs 7,474.14 crore, fruits worth Rs 2,771.32 crore and vegetables worth Rs 4,702.78 crore.

Among all the European countries, the UK is the most important destination for Indian vegetables and fruits. Export of fresh vegetables to the UK stood at Rs 183 crore in 2015-16.

It is the second largest importer of Indian grapes and mangoes, which stood at Rs 209 crore and Rs 32 crore respectively.

Though there could be decline in demand due to currency-related issues, exporters hope that there would be some benefits like exemption of some duties and relaxation of phytosanitary norms. "We believe that the quarantine restrictions for exports to the UK may be liberalised after it leaves the EU.

Currently, all of EU quarantine concerns, including those of growing countries like Spain and Portugal, are factored in while setting up rules and regulations. Now, the UK will have to consider only its own quarantine concerns. Being a Northern European country, we expect it to have far fewer restrictions," Khakhar said. Grape exporters think that the UK could exempt the 8% import duty on Indian grapes as it does not grow grapes locally.

Source : economictimes.indiatimes.com