Report Highlights:

CY 2016 water buffalo meat (carabeef) and beef production is projected to increase marginally by five percent to 4.5 million tons carcass weight equivalent (CWE) due to population growth and moderate export demand. CY 2016 carabeef exports are projected to increase to 2.2 million tons CWE on continued demand from the Middle East, Africa, and Southeast Asia.

Executive Summary:

The CY 2016 cattle (Bos taurus or Bos indicus) and water buffalo (Bubalus bubalis) population is estimated at 301.6 million head. CY 2016 water buffalo meat (carabeef) and beef production is projected to increase marginally by five percent to 4.5 million tons carcass weight equivalent (CWE) due to population growth and moderate export demand. CY 2016 carabeef exports are projected to increase to 2.2 million tons CWE on continued demand from the Middle East, Africa, and Southeast Asia. CY 2015 carabeef exports are lowered to 2.1 million tons on slow export pace.

Production:

The CY 2016 cattle (Bos taurus or Bos indicus) and water buffalo (Bubalus bubalis) population is estimated at 301.6 million head. CY 2016 carabeef and beef production is projected to increase marginally by five percent to 4.5 million tons carcass weight equivalent (CWE) due to population growth and moderate export demand. The industry and government sources indicate that the cattle and water buffalo population will remain strong over the next decade on steady growth in the dairy sector. State government disease control programs as well as improved veterinary services, extension services, and other farm management programs offered through cooperatives and by the private sector reportedly have helped mitigate animal losses. However, challenges remain such as the reoccurrence of foot-and-mouth disease (FMD) and the lack of readily available veterinary services at the village level.

Most Indian states restrict or prohibit cow slaughter due to religious sensitivities, which means that the vast majority of domestic production is carabeef. Recently, the state of Maharashtra completely prohibited cow slaughter, including the transportation, sale, or possession of beef. According to the media, domestic traders further pursued the issue at a local court in Maharashtra; this court ruled that that the state government should not to punish consumers for beef possession for a period of three months (until July 29, 2015). Other news reports noted that Haryana is also updating its existing legislation for cow slaughter, which is expected to include stricter provisions against individuals who illegally slaughter cows. Reportedly, Haryana's new legislation has been approved by the state legislative assembly; however, the state government's website currently does not provide any updated information.

In Maharashtra, industry sources indicate that Indian carabeef exporters are not directly affected by the new legislation since they only export carabeef. However, according to the media, religious groups have wrongly identified carabeef as beef, which resulted in disrupting transportation and sales in a few cases. Live animals are generally traded in livestock markets administered by local government bodies and regulated by state governments. India's carabeef production is largely concentrated in states of Uttar Pradesh, Punjab, Maharashtra, and Andhra Pradesh.

Consumption:

CY 2015 and CY 2016 beef and carabeef consumption estimates are forecast to grow to 2.175 and 2.3 million tons CWE on population growth. Due to its affordability, carabeef is the second most consumed animal protein after chicken meat. At local markets, carabeef is sold fresh due to lacking or underdeveloped cold chain facilities; furthermore, consumers largely prefer fresh product.

Processing

Locally government-managed slaughterhouses or abattoirs slaughter the water buffalo or cattle and sell the primal cuts (sometimes cut into quarters) to wholesalers/brokers or local meat shops that further sell or process the meat at local markets. Modern slaughter houses with processing facilities primarily cater to the export market. According to industry sources, most exported carabeef is sold in third country wet markets and not further processed via an organized sector. However, some import markets process carabeef into canned meat, sausage, salami, burgers and other processed foods.

The Agricultural and Processed Food Products Export Development Authority (APEDA) under the Ministry of Commerce and Industry approves export-oriented slaughterhouses/meat processing units and provides guidance to industry on how to improve sanitary and hygiene standards for product destined for export markets. There are 66 approved Indian establishments that operate as both an abbatoir and processing facility for export.

The Food Safety and Standards Authority of India (FSSAI) regulates domestic slaughter and meat processing through the regulation entitled: Food Safety and Standards Rules and Regulation, 2011 (FSSR). In order to further develop the industry, the Ministry of Food Processing Industries provides assistance through various schemes that address the establishment or modernization of abattoirs, cold chain operations, and food surveillance.

Trade:

CY 2016 carabeef exports are projected to increase to 2.2 million tons CWE on continued demand from the Middle East, Africa, and Southeast Asia. CY 2015 carabeef exports are lowered marginally to 2.1 million tons on slow export pace. The CY 2014 export estimate is amended to 2.087 million tons on revised customs data. Vietnam, Egypt, and Malaysia are the largest export markets for India (See figure below). No subsidy is provided for carabeef exports.

Regarding future Russian trade, although five Indian plants were initially approved to export to Russia this year, four plants were allegedly suspended due to FMD concerns. It is unclear when the suspension will be lifted.

Policy:

Carabeef Meat Production Programs and Policy

The Department of Animal Husbandry, Dairying, and Fisheries (DAHDF) in the Ministry of Agriculture (MOA) supports state governments on issues such as animal diseases, genetic resources, feed and fodder research, processing and marketing facilities, and livestock production. However, Indian states are individually responsible for their own agricultural and animal husbandry policies and programs. Regarding major diseases, the MOA administers national level programs for FMD, peste des petits (PPR), and brucellosis; it plans to spend approximately $468 million from 2012-17. The World Organisation for Animal Health (OIE) recently recognized that India has an official disease control program for FMD.

Other national level schemes focus more on dairy development, such as the National Programme for Bovine Breeding and Dairy Development (NPBB&DD), which supports enhanced productivity and farm management, and the Dairy Entrepreneurship Development Scheme (DEDS) that encourages private investment in the dairy sector with subsidies up to 25 to 33.33 percent of the project cost. According to MOA, by December 2014, 224,402 dairy units were created through DEDS. The National Dairy Plan (NDP) focuses on improving dairy production through various initiatives such as breed improvement, artificial insemination services, fodder development, and expanding milk procurement systems at the village level.

India has limited cultivable land for growing crops, which is mostly devoted to producing food grains, oilseeds, and pulses. Likewise, grazing pasture has degraded due to overuse or urban sprawl. Government programs falling under the Ration Balancing Program and Accelerated Fodder Development initiative strive to improve animal nutrition by distributing information on nutrient requirements and how to produce local fodder.

Trade Policy

According to the current Export and Import Policy of the Government of India, each export consignment is subject to compulsory laboratory testing. If passed, the product receives a pre- shipment health inspection certificate (one certificate is issued per consignment).

The Government of India has given the following agencies authority to issue health certificates:

  1. All State Directorates of Animal Husbandry
  2. Export Inspection Agencies (EIAs)
  3. Directorate of Marketing and Inspection (DMI)
  4. Deonar abattoir, Mumbai (for chilled sheep and goat meat only)
  5. Ghazipur abattoir, Delhi (for carabeef, sheep, and goat meat)
  6. Perumbur abattoir, Chennai (for carabeef, sheep, and goat meat)

According to the Livestock Importation Act, 1898 and its further amendments, all meat product exports to India require a sanitary import permit issued by DAHDF. India does not permit beef and beef product imports.

India: Commodity, Animal Numbers, Cattle, PSD

Animal Numbers, Cattle

2014

2015

2016

Market Begin Year

Jan 2014

Jan 2015

Jan 2016

India

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Total Cattle Beg. Stks

300600

300600

301100

301100

0

301600

Dairy Cows Beg. Stocks

123000

123000

125000

125000

0

127000

Beef Cows Beg. Stocks

0

0

0

0

0

0

Production (Calf Crop)

66000

66000

67000

67000

0

68000

Total Imports

0

0

0

0

0

0

Total Supply

366600

366600

368100

368100

0

369600

Total Exports

0

0

0

0

0

0

Cow Slaughter

0

0

0

0

0

0

Calf Slaughter

0

0

0

0

0

0

Other Slaughter

37000

37000

40500

38500

0

40500

Total Slaughter

37000

37000

40500

38500

0

40500

Loss

28500

28500

27000

28000

0

27200

Ending Inventories

301100

301100

300600

301600

0

301900

Total Distribution

366600

366600

368100

368100

0

369600

CY Imp. from U.S.

0

0

0

0

0

0

CY. Exp. to U.S.

0

0

0

0

0

0

Balance

0

0

0

0

0

0

Inventory Balance

500

500

-500

500

0

300

Inventory Change

0

0

0

0

0

0

Cow Change

4

4

2

2

0

2

Production Change

2

2

2

2

0

1

Production to Cows

54

54

54

54

0

54

Slaughter to Inventory

12

12

13

13

0

13

Slaughter to Total Supply

10

10

11

10

0

11

India: Commodity, Meat, Beef and Veal, PSD

Meat, Beef and Veal

2014

2015

2016

Market Begin Year

Jan 2014

Jan 2015

Jan 2016

India

USDA Official

New Post

USDA Official

New Post

USDA Official

New Post

Slaughter (Reference)

37000

37000

40500

38500

0

40500

Beginning Stocks

0

0

0

0

0

0

Production

4125

4100

4500

4275

0

4500

Total Imports

0

0

0

0

0

0

Total Supply

4125

4100

4500

4275

0

4500

Total Exports

2082

2087

2400

2100

0

2200

Human Dom. Consumption

2043

2013

2100

2175

0

2300

Other Use, Losses

0

0

0

0

0

0

Total Dom. Consumption

2043

2013

2100

2175

0

2300

Ending Stocks

0

0

0

0

0

0

Total Distribution

4125

4100

4500

4275

0

4500

CY Imp. from U.S.

0

0

0

0

0

0

CY. Exp. to U.S.

0

0

0

0

0

0

Balance

0

0

0

0

0

0

Inventory Balance

0

0

0

0

0

0

Weights

111

111

111

111

0

111

Production Change

9

9

9

4

0

5

Import Change

0

0

0

0

0

0

Export Change

18

18

15

1

0

5

Consumption Change

0

0

3

8

0

6

Imports Percent Consumption

0

0

0

0

0

0

Exports Percent Production

50

51

53

49

0

49

Population

1236344631

1236344631

1251695584

0

0

0

Per Capita Consumption

1.6525

1.6

1.6777

0

0

0

India: Tariffs for Selected Livestock Products, 2015

HS CODE

ITEM DESCRIPTION

BASIC

CVD

SPL CVD

TOTAL DUTY WITH 2+1%EC

IMPORT POLICY

01012100-01019090

LIVE HORSES, ASSES, MULES & HINNIES

30

0

4

36.136

Restd

01022100 -01029090

LIVE BOVINE ANIMALS

30

0

4

36.136

Restd

01031000-01039200

LIVE SWINE

30

0

4

36.136

Restd

01041010 -01042000

LIVE SHEEP & GOATS

30

0

4

36.136

Restd

01051100 -01059900

LIVE POULTRY I.E. FOWLS OF THE SPECIES GALLUS DOMESTICUS, DUCKS, GEESE, TURKEYS AND GUINEA FOWLS

30

0

4

36.136

Restd

02011000 -02013000

MEAT OF BOVINE ANIMALS, FRESH AND CHILLED

30

0

0

30.90

R SanP

02021000 -02023000

MEAT OF BOVINE ANIMALS, FROZEN

30

0

4

36.136

R SanP

02031100-02031900

MEAT OF SWINE, FRESH, OR CHILLED

30

0

0

30.90

Fr SanP

02032100-02032900

MEAT OF SWINE, FROZEN

30

0

4

36.136

Fr SanP

02041000 -02045000

MEAT OF SHEEP OR GOATS, FRESH CHILLED OR FROZEN

30

0

0

30.90

Fr SanP

02061000

EDIBLE OFFAL OF BOVINE ANIMALS, FRESH OR CHILLED

30

0

0

30.90

R SanP

02062100 -02069090

EDIBLE OFFAL OF BOVINE ANIMALS, SWINE, GOATS, HORSES, ASSES, MULES OR HINNES, FRESH, CHILLED OR FROZEN

30

0

4

36.136

R SanP

02071100

MEAT, & EDIBLE OFFAL, OF THE POULTRY OF HEADING 0105, NOT CUT IN PIECES, FRESH OR

CHILLED

30

0

0

30.90

Fr SanP

02071200

MEAT, & EDIBLE OFFAL, OF THE POULTRY OF HEADING 0105, NOT CUT IN PIECES, FROZEN

30

0

4

36.136

FrSanP

02071300

CUTS & OFFAL, FRESH OR CHILLED

100

0

0

100.00

Fr SanP

02071400

CUTS & OFFAL, FROZEN

100

0

4

108.00

Fr SanP