OPPORTUNITIES IN THE FOOD MARKETS OF

INDIA

For further information about this report contact: Dennis Pervis, Senior Markets Analyst Marketing and Trade Team Agriculture and Agri-Food Canada British Columbia Regional Office #420 - 4321 Still Creek Drive Burnaby, B.C. V5C 6S7 Email: [email protected] Last Updated: February, 2012

Although every effort is made to ensure that the inform ation is correct. Agriculture and A griFood C anada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.

OPPORTUNITIES IN THE FOOD MARKETS OF INDIA TABLE OF CONTENTS

EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii I. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 II. BUSINESS PARADIGMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 A. The Competitive Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 B. Pure Export . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 C. Export with Agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 D. Multi-National Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 III. PROFILE OF INDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A. Geography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 1. The Himalayan Mountains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2. The Gangetic Plain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3. Peninsular India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 B. Demography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 C. Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1. History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Food . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 a) Traditional . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 b) Recent Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 i) Shopping Habits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ii) Health and Wellness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 3. Religions and Philosophies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 D. Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 1. Data Sources and Valuations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 2. Currencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 3. Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 4. Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 E. International Transportation - Canada to India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1. Ocean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2. Air Freight . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 F. Economic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 1. Historical Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 2. Recent Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 3. Determinants of Food Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 4. Consumer Expenditures on Food and Non-Alcoholic Beverages, by Political Division . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ii

5. Determinants of Food Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 G. The Regions of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 1. East & Northeast India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2. North India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 3. South India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 4. West India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 IV.

RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 A. Internal Political/Economic Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 B. External Political/Economic Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 C. Handling Risks of International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

V. PRODUCT ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 A. Selected Products Imported by India From Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 B. Selected Products Imported by India But Currently Not From Canada . . . . . . . . . . . . . . 30 VI.

GRID ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 A. All Agricultural, Agri-food & Seafood Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 B. Agricultural Agri-food & Seafood Imports of India From Canada vs From the Whole World . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

VII. PRICE WORK-UPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 A. The Research Price Work-up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 B. Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 VIII. A. B. C. D. E. F. G.

IDENTIFICATION OF CONTESTABLE MARKETS . . . . . . . . . . . . . . . . . . . . . . . . . 41 Dairy Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Product Groups with an Index of Indicators of 1.00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Product Groups with an Index of Indicators from 0.75 to 0.99 . . . . . . . . . . . . . . . . . . . . 51 Product Groups with an Index of Indicators from 0.50 to 0.74 . . . . . . . . . . . . . . . . . . . . 51 Product Groups with an Index of Indicators from 0.25 to 0.49 . . . . . . . . . . . . . . . . . . . . 53 Product Groups with an Index of Indicators from 0.00 to 0.24 . . . . . . . . . . . . . . . . . . . . 54

IX.

CONCLUSIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

X.

CONTACTS IN INDIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

XI.

CONTACTS IN CANADA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

APPENDIX 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 APPENDIX 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 iii

Canada - New Zealand/US - Measures Affecting the Importation of Milk and the Exportation of Dairy Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 A. The WTO Rulings Regarding Dairy Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 B. The Mutually Agreed Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86 ENDNOTES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

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LIST OF TABLES Table 1. Table 2. Table 3. Table 4. Table 5. Table 6. Table 7. Table 8. Table 9. Table 10. Table 11. Table 12. Table 13. Table 14. Table 15. Table 16. Table 17. Table 18. Table 19. Table 20.

Selected Traditional Cuisines of India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Estimated Consumption of Packaged and Processed Food Products. India. 2006 and 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Value of Sales of Health and Wellness Classifications. India . . . . . . . . . . . . . . . . . . 11 Religions and Philosophies of India - Food Preferences. . . . . . . . . . . . . . . . . . . . . . 12 Average Tariff Rates Applied on Agricultural, Agri-food, Fish and Seafood Products, 2008. India . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Determinants of Changes in the Effective Demand for Food. 2005 to 2011. . . . . . . 19 Expenditure on Food and Non-alcoholic Beverages in Selected Political Divisions of India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Production and Annual Increases of Selected Crops, India . . . . . . . . . . . . . . . . . . . . 22 Tariff Rates on Selected Imported Products. India. 2008. . . . . . . . . . . . . . . . . . . . . . 23 Ratios of Indian CIF Import Prices from Canada to Indian CIF Import Prices from the World. Selected Products. 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Summary of Indicators of Contestability of Selected Markets. India. . . . . . . . . . . . . 43 Area, Population and NSDP of States and Union Territories of India. 2011. . . . . . . 60 Population and GDP. India. 1992 - 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 GDP by Origin, 2011. India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Percent of Employment by Sector. India. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Distribution of Households by Disposable Income. India . . . . . . . . . . . . . . . . . . . . . 65 Value and Volume of Retail Sales of Packaged Food. India. 2005 and 2010. . . . . . 65 Compound Annual Rates of Change of Production and Consumption (Supply) of Selected Products. India. 1997 - 2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Indicative CIF Prices of Imports to India from Canada, the World and Major Competitors. 2010. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Canada's WTO Dairy Export Subsidy Commitment Levels . . . . . . . . . . . . . . . . . . . 86

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LIST OF FIGURES Figure 1. Figure 2. Figure 3. Figure 4.

Population Pyramid. India. 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Distribution of Households by Disposable Income Classes. India. . . . . . . . . . . . . . . . 7 Proportion of Packaged Food Sales by Distribution Format. India. . . . . . . . . . . . . . . 8 Value of the INR Expressed in CADs (CAD per INR). January 1993 to February 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Figure 5. Percentage Changes in Selected Indian Agricultural, Agri-food & Seafood Imports From Canada vs From the World. 2005 - 2010. Part 1. . . . . . . . . . . . . . . . . . . . . . . . 38 Figure 6. Percentage Changes in Selected Indian Agricultural, Agri-food & Seafood Imports From Canada vs From the World. 2005 - 2010. Part 2. . . . . . . . . . . . . . . . . . . . . . . . 39 Figure 7. Political Map of India. 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

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EXECUTIVE SUMMARY INDIA: • is the second most populous country in the world after China; with 1.21 billion people increasing at an annual rate of 1.64%. - A positive influence on the demand for food; • experienced a 7.80% annual increase in GDP per person between 1999 and 2010. - A positive influence on the effective demand for food; • has 20 political regions out of 35 with NSDP per person above the national average (Andaman & Nicobar Islands, Mizoram, Nagaland, Sikkim, Chandigarh, Delhi, Haryana, Himachal Pradesh, Punjab, Uttarakhand, Andhra Pradesh, Karnataka, Kerala, Lakshedweep, Pondicherry, Tamil Nadu, Dadra & Nagar Haveli, Goa, Gujarat and Maharashtra). - Canadian exporters should initially target one or more of these geographic areas; • experienced a -3.99% annual decrease in the value of the Indian Rupee relative to the Canadian Dollar, between January 1995 and February 2012. - A small but negative influence on imports from Canada; • is experiencing growing inequities in per capita income as measured by a gini ratio of 39.9 in 2011 and estimated NSDP per capita ranging from CAD 436 in Bihar State to CAD 4,355 in Goa. - A negative influence on political stability; • sourced 24.70% of its food imports from 32 American countries, in 2010. The top five American countries were: Argentina, Brazil, the USA, Canada and Chile. - Canada faces considerable competition from emerging economies in South America and from the USA; • imported CAD 13,767 million worth of agricultural, agri-food & seafood products in 2010, of which CAD 568 million worth (4.1%) was from Canada. As a supplier of food to India, Canada has moved from 9th place in 2005 to 7th place in 2010 - Canada must continue this progress; • represents several risks for Canadian exporters. - The facilities of Export Development Canada and the Canadian Trade Commissioner service may be useful in managing these risks. Based on the analysis in this paper, Canadian food exporters may find new or continuing opportunities in the following Indian markets: • Fish, Nesoi, With Bones, Fresh Or Chilled; vii

• Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, Not over 1.5% Fat; • Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, Over 1.5% Fat; • Fats And Oils Derived From Milk, Nesoi; • Peas, Dried Shelled, Including Seed; • Kidney Beans & White Pea Beans, Dried Shelled, Including Seed; • Beans Nesoi, Dried Shelled, Including Seed; • Leguminous Vegetables Nesoi, Dried Shell, Including Seed; • Nuts Nesoi, Fresh Or Dried, Shelled Or Not; • Pears And Quinces, Fresh; • Ginger; • Poppy Seeds, Whether Or Not Broken; • Natural Gums, Gum Resins, Resins And Balsams Nesoi; • Cocoa Paste, Not Defatted; • Cocoa Powder, Not Sweetened; • Nonalcoholic Beverages, Nesoi; • Ethyl Alcohol & Other Spirits Denatured Any Strength; • Wool, Not Carded Or Combed, Greasy, Nesoi; • Wool Not Carded / Combed Degreased Not Carbonized, Shorn.

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OPPORTUNITIES IN THE FOOD MARKETS OF INDIA I. PURPOSE The purpose of this paper is to provide Canadian food exporters with indications of opportunities or “contestable markets” in India. The analysis uses several indicators of contestability and ranks product groups according to the number of positive indicators associated with each. The paper provides indications only. Individual companies should follow up on opportunities of interest with: further market research, including the determination of quality and packaging of competing products; acquisition of information on sanitary/phyto-sanitary and labelling requirements; the development of a research price work-up; other barriers to trade and; eventually a specific price work-up. The indicators of contestability used in this paper are based on historical statistics and therefore assume Indian tastes and preferences are fixed. It also assumes that the images that Indian consumers have of Canada and Canadian products are fixed and not always positive relative to the images of competing products. The Branding Strategy for the Canadian Agriculture and Food Sector1 is designed to improve knowledge of Canadian products and food systems, to differentiate Canada from its competitors and establish a reputation for high quality. This program can have a major positive influence on Indian acceptance of Canadian food products and increase the probabilities of finding opportunities in Indian markets.

II. BUSINESS PARADIGMS There are several ways in which Canadian companies can participate in the food markets of India. Some understanding of the competitive nature of the Indian food markets is necessary for Canadian companies to decide on the appropriate paradigm for them.

A. The Competitive Environment In 2010, the packaged food market was dominated by multinational companies local manufacturers and government cooperatives. There was also a thriving unorganised sector consisting of many small entities. The market was highly competitive and fragmented. Even the large multinationals had to fight hard to maintain market positions. However, over the period 2005 to 2010, the market has become slightly more concentrated. The top 10 food companies producing impulse and indulgence products accounted 68 percent of the market in 2005 and 73 percent in 2009. Similarly, the top 10 food companies producing nutrition products / staples accounted for 38 percent of the market in 2005 and 41 percent in 2009. To compete in this environment companies continuously reviewed product innovations as well as marketing and communication strategies. As the rural areas became increasingly important, companies engaged 1

in various promotional offers. Smaller packs at low prices were key to growth in sales of such products as bakery products, soup, noodles, and confectionery products.

B. Pure Export The paradigm assumed in this paper is characterised by production in Canada by Canadian companies with sea or air transport to India by any available carrier. Canadian companies normally cease to be interested in a shipment when it is loaded onto a ship or plane and payment is received. Wholesaling, distributing and retailing is done by Indian companies at their risk. With this paradigm the emphasis is on identifying products that Canadian companies can profitably export and Indian companies can profitably import from Canada and finding those Indian buyers.

C. Export with Agreements This paradigm is much the same as pure export except that Canadian companies enter into various kinds of agreements with Indian companies to perform any one or more marketing functions such as wholesaling, storage, distributing, advertising and/or retailing.

D. Multi-National Operations This paradigm includes a mix of local (in India) production and imports. It might also includes the performance of marketing functions throughout the marketing channel. Multinationals operate as if there were no borders, placing production plants in the most economic position in relation to sources of inputs and the markets to be served. Tariffs and other trade barriers are costs of doing business and influence the placement of production plants based only on economic and financial considerations. With barriers to trade falling, these companies are in the best position to adjust and benefit from the comparative advantages of many countries. Some multi-national companies active in India were 2: Cadbury India Ltd. is a part of Kraft Foods of the USA. The company is involve in the production of chocolate confectionery, beverages, biscuits, gum and candy. Frito-Lay India is a owned by PepsiCo Inc. of the USA. The company produces confectionery products, specifically potato chips. Perfetti Van Melle India Pvt Ltd is based in Europe. In India the company is involved in the production of gums, candies and chewies. Nestle India Ltd is a subsidiary of Nestle SA of Switzerland. The company is involved in the production of milk products & nutrition, beverages, prepared dishes & cooking aids and chocolate & confectionery. 2

GlaxoSmithKline Consumer Healthcare Ltd is an associate of GlaxoSmithKline plc of the UK. It manufactures and distributes hot drinks and OTC healthcare products.

III.

PROFILE OF INDIA A. Geography India is located in Southern Asia with the Arabian sea to the west, the Bay of Bengal to the east and the Indian Ocean to the south. On the north-west it is bordered by Pakistan, on the north by China, Nepal, and Bhutan. On the northeast, it is bordered by Bangladesh and Myanmar. With an area of 3,287,590 Km2 3, it is almost one-third the size of Canada. India can be divided into three main regions: the Himalayan Mountains, the Gangetic Plain, and Peninsular India.

1. The Himalayan Mountains The Himalayan mountain system is 160 to 320 km wide and extends 2,400 km along the northern and eastern borders of India. It includes the mountains surrounding the Vale of Kashmir in the Karakoram Range, and the central and eastern Himalayas. Ancient geological forces moulded the Himalayas as the Indian plate of the Earth’s crust subducted under the Eurasian landmass, creating an uplift that continues to push this northernmost boundary of India ever higher. The Himalayan Range is the highest mountain system in the world. Among its summits, wholly or partly within India or within territory claimed by India and administered by Pakistan, are K2 (8,611 m) and Kanchenjunga (8,598 m), which are the second and third highest peaks in the world, after Mount Everest. Other prominent Indian peaks include Nanga Parbat (8,125 m), Nanda Devi (7,817 m), Rakaposhi (7,788 m), and Kamet peak (7,756 m). The Himalayan region, including the foothills, is sparsely settled. Agriculture and animal herding are the main economic activities.

2. The Gangetic Plain South of, and parallel to, the Himalayas, lies the Gangetic Plain, a belt of flat, alluvial lowlands 280 to 400 km wide. This area includes some of the most agriculturally productive land in India. The Indian portion of the broad Gangetic Plain encompasses several river systems, and stretches from Punjab state in the west to the Assam Valley in the east. Marking the western end of the Gangetic Plain are the Indus River and its tributaries, including the Sutlej and Chenab rivers, which flow through Punjab in India’s northwest corner. The Gangetic Plain is formed by the Ganges River and its tributaries, which drain the southern slopes of the Himalayas. The Assam Valley is separated from the Gangetic Plain by a narrow corridor of land near the city of Darjeeling. The valley is watered by the Brahmaputra River, which rises in Tibet and crosses into India at its northeast corner, then flows north of the Khasi Hills into Bangladesh. The Thar 3

Desert, a huge, dry, sandy region extending into Pakistan, lies at the southwestern end of the Gangetic Plain.

3. Peninsular India South of the plains region lies Peninsular India. The northern peninsula features a series of mountain ranges and plateaus. The Aravalli Range runs in a north-south direction on the eastern edge of the Thar Desert, and low hills cut by valleys lie along the border between the states of Uttar Pradesh and Madhya Pradesh in central India. The Narmada River flows southwest between the Vindhya Range and an associated plateau on the north, and the Satpura Range on the south. The plains of the Chota Nagpur Plateau in the eastern states of Chhattisgarh and Jharkhand also lie within this region. The rocky and uneven lands of the northern peninsula are sparsely populated. Herding is a major occupation in the west, and farming of coarse grains such as millet is common in the central part. In the southern part of peninsular India lies the vast Deccan Plateau, a tableland lying within a triangle formed by the Satpura Range, the steep mountain slopes of the Western Ghats, and the gentler slopes of the Eastern Ghats. Elevations in the plateau region average 600 m, although outcroppings as high as 1,200 m occur. At their northern end, the Western Ghats vary in height from 900 to 1,200 m, but the Nilgiri Hills of the extreme south reach a height of 2,637 m at Doda Betta, their highest peak. The Eastern Ghats lie along the eastern flank of the Deccan Plateau, interrupted by the Krishna and Godavari river basins. Elevations of the Eastern Ghats are much lower, averaging 600 m. The plateau itself, even rockier than the northern extension of peninsular India, supports a sparse agricultural population and is also home to industrial enterprises. The Indian Peninsula is bordered by a mostly fertile seashore. The west coast, including the extensive Gujarat Plain in the north, the thin Konkan shore in Maharashtra state, and the Malabar Coast in the south, support substantial populations of farmers and fishermen. Ancient trade routes to the west helped make the cities and towns of this region into market centers for textiles and spices. The east coast’s broad alluvial plains, stretching from the Kaveri River delta in the south to the Mahanadi River delta in the north, are intensely farmed.4

B. Demography The population of India was estimated to be 1,205,074,000 (2012). A compound trend line fitted to the population data from 1992 to 2012 indicates an annual rate of increase of 1.64%. See Table 13. The age/gender distribution of the population is presented in the population pyramid of Figure 1. The largest age groups were between 0 and 19 years of age. The younger age groups were almost the same size, indicating a reduction in the rate of growth of the population (from 1.72% between 1999/2000 to 1.34% between 2011/2012).

4

C. Culture 1. History Many cultures have come together to influence the India of today. Indian history can be traced back to 3000 - 2500 BC. A reader interested in the details of Indian history can access the website: http://www.sscnet.ucla.edu/southasia/History/ mainhist.html 5. More recent events will be discussed in section “F” Economic. 2. Food a) Traditional There is no single traditional cuisine of India. The many cultures that have come to India over the centuries have contributed their flavours and recipes using the basic products available locally. A sampling of traditional Indian cuisines and the products that might by supplied by Canada is presented in Table 1.

Figure 1. Population Pyramid. India. 2012. Source: Data from US B ureau of C ensus. International Data Base.

Table 1. Selected Traditional Cuisines of India. Cuisine

Description

Kashmiri.

Largely meat based, particularly lamb, goat and chicken flavoured with saffron and chillies. Other products include walnuts, dried dates and apricots used in puddings, curries and snacks. Cottage cheese is popular with meats and vegetables. Fresh water fish is also a delicacy. Popular desserts consist of fresh fruits such as strawberries, plums, cherries and apples.

Punjabi.

Marinated chicken, fish, paneer, rotis and naans of many types are cooked in earthen ovens half buried in the ground. In the winter, makki ki roti (maize flour bread) is popular along with sarson ka saag (mustard leaf gravy). Fresh curd and white butter are consumed in large quantities. A popular drink is lassi (a sweet or salted drink made with curd). Other popular dishes are ma ki dal, rajma (kidney beans) and stuffed parathas.

Mughlai (Delhi).

Rich sauces, butter-based curries, ginger flavoured roast meats and delicious sweets.

5

Cuisine

Description

Bengali.

Fish in a variety of styles. Use of mustard oil rather than coconut oil. Five basic spices used: zeera, kalaunji, saunf, fenugreek and mustard seeds. Sweets made from burnt milk, yoghurt sweetened with jaggery, crisp samosas.

Maharashtrian.

Subtly flavoured vegetarian delicacies and hot, aromatic meat and fish curries. Crispy sweets made mostly of rice and jaggery. Konkani and Malwani cuisines originated in the coastal parts of this region and are seafood based.

Goan.

Influenced to some extent by Portugese culture. Tangy pork vindaloo, spicy sorpotel and fish curry with rice. Coconut and fish based dishes. Local wines or the local liqueur called Feni. Most, but not all Goan dishes are chili hot, spicy and pungent. Seafood includes prawns, lobsters, crabs, and jumbo pomfrets (bream). Goa is not known as vegetarian. Hindus like lamb and chicken while Christians like pork and both prefer fish and seafood to any other meat.

Gujarati.

Vegetarian cuisine. Lentils and vegetables, yoghurt and buttermilk are a part of a Gujarati daily diet. Potatoes, brinjal, and green beans and other vegetable are used in the winter to prepare undhyoo. Other dishes are prepared with chickpea flour, thickened milk, nuts and the srikhand. Yogurt, flavoured with saffron, cardamom, nuts and candied fruit.

Rajasthani.

Historically the Rajas who went on hunting expeditions ate the meat of the game fowl they brought back. Vegetarian Rajasthanis cook in pure ghee, famous for its aroma. Rajasthan includes a large desert area and the scarcity of water and lack of fresh green vegetables has affected Rajasthani cooking. Dried lentils and beans from indigenous plants like sangri, ker etc. are staples of the Rajasthani diet. Gram flour is an integral cooking ingredient. Bajra and corn are used all over the state for making rotis and other breads. Other food items are millet bread, chutney, onions and milk.

Hyderabadi (Andhra Pradesh).

This category includes the original red hot Andhra cooking and the Hyderabadi cuisine with its Mughlai influence. Vegetables are prepared with different masalas giving the same vegetables different flavours. Traditional Andhra cuisine includes many non-vegetarian dishes which are also spicy. Hyderabadi cuisine is rich and aromatic with a liberal use of spices and ghee as well as nuts and dried fruit. Lamb is the most widely use meat in non-vegetarian dishes. The biryanis (flavoured rice with meat or vegetables) is one of the most distinct Hyderabadi foods.

6

Cuisine Source: Note:

Description www.india-tou rism.net/cuisine.htm . (Accessed Oct 2011) Bold items could be supplied by Canada.

Traditional Indian foods still dominate the consumption pattern of Indians and Canadian exporters may find some opportunities supplying ingredients. Traditional cuisines are normally prepared in the home with some roadside lunching common.

b) Recent Trends i) Shopping Habits The middle class of India has not been satisfactorily measured. It is very heterogeneous and its size depends on the definitions of several parameters. Estimates range from 25 million to 200 million but it is generally accepted that it is growing. Canadian exporters are likely to find the greatest opportunities in the markets serving the middle and upper income groups of India. Figure 2 and Table 16 present an estimate of the distribution of households by disposable income class between 2005 and 2011. This data indicates that the two higher income classes were increasing at the expense of the three lower income classes.

Figure 2. Distribution of Households by Disposable Income Classes. India. Note: Classes are in International $ at Purchasing Power Parity. Source: Adapted from Euromonitor International (Accessed Feb 2012).

In 2005, households in the International $ (PPP) 10,000 to 74,999 class was 35.72 percent of all households, in 2011 it was 62.56 percent. India’s middle class is expanding quickly. The typical pattern of buying groceries and emerging trends were closely associated with both tradition and new technology. A typical household purchased less-perishable food and other groceries at the beginning of each month - sometimes having them delivered. More-perishable products such as bread and eggs were purchased every one or two weeks. Milk was purchased daily. It is estimated that in 2005, 15.3 percent of households in India had a refrigerator. This increased to 19.0 percent in 2011.6 The Delhi region had the highest percentage of households with refrigerators (52.5 percent) and Bihar had the lowest (3.6 percent) in 2011. As increasing numbers of Indians in most regions purchase refrigerators, the buying patterns of groceries are changing. 7

Small grocery stores were the dominant single food outlets but fruit and vegetables were bought from unorganized vendors. Some grocery chains were expanding into the supermarket or hypermarket category offering a wide range of products; however, the purchase of fruit and vegetables in this format was not yet fully accepted. Even so, supermarkets and hypermarkets were putting pressure on the traditional grocery store. Visits to a supermarket encouraged more impulse buying than did visits to a traditional grocery store or phone shopping.

Figure 3. Proportion of Packaged Food Sales by Distribution Format. India. Source: Adapted from Euromonitor International (Accessed O ct 2011).

Small grocery stores dominated the sales of packaged food but were being pressured by supermarkets and hypermarkets, particularly in urban areas. In 2005, 57.4 percent of packaged food was sold through small grocery stores; in 2010 the proportion was down to 51.7 percent. During the same period, sales through supermarkets/hypermarkets increased from 6.9 percent to 11.4 percent. See Figure 3. Eating out was a very popular activity while attending other functions. It is estimated that Indians spent INR 350 billion (approx. CAD 10.5 billion) eating out annually. Of this, organized establishments accounted for only INR 20 billion (CAD 0.6 billion). International fast food chains such as Subway, McDonald’s and Pizza Hut were found in shopping malls and near cinema theatres. The “well-off” in urban areas were increasingly eating out in coffee shops, malls or retail stores. Lounge bars were the latest trend in urban areas and were frequented by young professionals, successful executives and single women in their late 20's. This trend began in Mumbai, Bangalore, Delhi and Kolkata and will no doubt spread to other urban areas. Among the “affluent”, clubs were becoming popular. In addition to many recreational facilities they were upgrading their food facilities and were competing with some of the finest restaurants or hotels of India. The “affluent” also had an interest in the performing arts. A play in Mumbai could cost about INR 1,000 (approx. CAD 23) which was beyond the reach of most Indians.

8

Middle to upper income families were increasingly two income, younger families. A small proportion of Indian families were moving to quick ready-to-eat foods and frozen foods. However 90% of the population still prefered fresh foods and considered processed foods to be not fresh and containing harmful preservatives. Table 2 presents estimates of the consumption of both regular and“health and wellness” packaged and processed food and beverages. In 2011, baked goods was the regular food category with the highest level of consumption (1,994.1 gm per person). Still bottled water was the beverage category with the highest level of consumption (4,291.4 ml per person). Between 2006 and 2011 chips / crisps and breakfast cereals were the fastest growing food categories. Consumption increased at a rate of 25.4 percent per year reaching 73.2 gm per person of chips / crisps and 24.7 gm per person of breakfast cereals, in 2011. India has one of the fastest growing economies in the world. Rising incomes and a more hectic lifestyle have increased the incidence of the health problems of the affluent (obesity, diabetes, hypertension and heart trouble). This has increased consumer interest in “health and wellness” products. In 2011, “health and wellness” bakery products had the highest level of consumption ( 479 gm per person). The fastest growing “health and wellness” category was snack bars. Consumption increased at a rate of 53.3 percent per year reaching a still small level of 1.5 gm per person.

Table 2.

Estimated Consumption of Packaged and Processed Food Products. India. 2006 and 2011.

Product

2006

2011

Change 2006 to 2010 (% / Year)

REGULAR PR ODUC TS 100% Juice (ml./person).

10.6

29.7

22.1

1,80 1.2

1,99 4.1

2.2

818 .2

1,34 4.7

10.3

8.2

24.7

25.4

34.8

40.1

2.6

Canned Meat and Meat Products (gms./person).

0.2

0.3

11.0

Canned Vegetables (gms./person).

0.9

1.3

7.3

24.2

73.2

25.4

Baked G oods (gms./person). Biscuits (gms./person). Bre akfast C ereals (gms./person). Butter (gms./person).

Chips /Crisps (gms./person).

9

Product

2006

2011

Chocolate Confectionery (gms./person).

Change 2006 to 2010 (% / Year)

35.4

79.3

17.2

Dehydrated Soup (gms./person).

1.3

3.0

18.3

Dried Baby Food (gms./person).

16.9

19.3

2.6

0.9

1.6

12.3

Extruded Snacks (gms./person).

24.1

59.4

19.4

Frozen Processed Fish/Seafood (gms./person).

0.6

0.9

8.7

Honey (gms./person).

6.0

9.1

8.8

Instant Noodles (gms./person).

64.5

168 .5

21.3

Juice Drinks (up to 24% Juice) (ml./person).

188 .9

478 .5

21.0

Ketchup (gms./person).

16.7

33.5

14.8

Nectars (25-99% Juice) (ml./person).

41.9

110 .7

20.8

3.1

4.0

5.1

46.7

135 .0

24.3

1,63 2.2

4,29 1.4

21.0

Sugar Confectionery (gms./person).

96.2

142 .6

8.2

Take-Home Ice Cream (ml./person).

28.9

64.6

17.2

1,04 2.9

1,56 5.2

8.6

Dried Pasta (gms./person).

Nuts (gms./person). Other Sweet and Savoury Snacks (gms./person). Still Bottled Water (ml./person).

Vegetab le and Seed Oils (gms./person).

HEALTH AND WELLNESS PRODUCTS Bakery Prod ucts (gms./person).

363 .9

479 .8

5.3

3.1

12.2

31.5

Noo dles (gms./person).

10

Product

2006

2011

Change 2006 to 2010 (% / Year)

Sauces, Dressings and Condiments (gms./person).

1.1

2.7

20.4

Snack Bars (gms./person).

0.2

1.5

53.3

Soft Drinks (ml./person).

40.9

76.1

13.4

Source:

Euromonitor International from trade sources / national statistics. (Accessed Jan 2012)

ii) Health and Wellness Health and wellness products are identified and classified as: organic, fortified/functional (FF), better for you (BFY), naturally healthy (NH) and food intolerance. The largest classification, by value of sales was BFY. Between 2005 and 2010, the value of sales of BFY products was increasing at a rate of 115.67 percent per year reaching CAD 4,235.1 million in 2010. See Table 3.

Table 3. Year

Value of Sales of Health and Wellness Classifications. India. Or gan ic CAD per INR (Million CAD)

Fortified / Functional (Million CAD)

Better for You (Million CAD)

Na tura lly Healthy (Million CAD)

Food Intolerance (Million CAD)

Total (Million CAD)

2005

0.027516

16.3

1,60 1.3

2,06 4.6

328 .9

3.2

4,01 4.3

2006

0.025117

18.0

1,61 1.8

2,34 7.7

349 .3

3.2

4,33 0.0

2007

0.026042

22.1

1,85 1.8

3,06 2.7

423 .1

3.6

5,36 3.4

2008

0.024576

24.8

1,99 6.6

3,35 6.7

471 .7

3.6

5,85 3.5

2009

0.023591

29.0

2,10 0.9

3,75 8.0

536 .3

3.7

6,42 8.1

2010

0.022556

35.7

2,25 8.0

4,23 5.1

605 .3

4.0

7,13 8.1

-3.48%

16.94%

7.68%

15.67%

13.54%

4.74%

12.59%

Annual Change

Source s: Adapted from Euromonitor International, “Health and Wellness - India”. Nov 2011. (Accessed Jan 2012). Pacific Exchange Rate Service.

In Regard to Health and Wellness Products: • Sales were expanding due to increasing number of products and targeting of lowerincome groups; • Sales were based on consumer demand for products with additional benefits and nutrients 11

•

•

such as proteins, vitamins and minerals and more recently omega-3 oil. Also the demand for naturally healthy foods such as green tea and 100% juices; Production was dominated by small domestic companies serving small local niche markets. There were also a number of larger domestic companies specializing in particular subsectors for example Hindustan Lever Ltd. lead in reduced fat soup, Nestle India lead in high fibre noodles and GlaxoSmithKline Consumer Healthcare specialized in fortified/functional hot drinks; They were marketed through supermarkets and as these outlets become increasingly popular so do health and wellness products.

3. Religions and Philosophies Table 4 presents a list of the major religions and philosophies of India and a brief indication of their food preferences. Vegetarianism is often strongly associated with India and several religions do include it as one if their requirements. However, many Indians eat meat of some kind according to what their religion allows and others do not adhere strictly to food rules. There are markets in India for meat products.

Table 4. Religions and Philosophies of India - Food Preferences. Religion / Philosophy

Percent of Population (%)

Brief Indication of Food Preferences

Hindu.

80.4

Do not eat beef of any kind but will eat other meats. Devout H indus are vegetarians and do not eat m eat at all. This derive s from the concep t of Ahim sa or non-violence to anything.

Islam.

13.4

Do not eat pork or drink alcohol. Strict Islamists will eat only according to the rules of Halal and Haram. See: http://www.eat-halal.com/halal.shtml (Apr 2006. Under reconstruction Jan 2012) and http://www.eat-halal.com/haram.shtml (Apr 2006. Under reconstruction Jan 2012).

Christian.

2.2

Few or no food restrictions based on religion. Strict Roman Catholics may eat fish on Fridays. Individuals may have persona l aversions to som e foods.

Sikh.

1.9

Few food restrictions. There are some restrictions regarding p reparation. A strict Sikh w ill not drink alcohol.

Buddh ist.

1.1

Food rules vary considerably. Some are vegetarian. The eater of meat must believe that the animal was not killed specifically to be eaten.

12

Religion / Philosophy

Percent of Population (%)

Jain.

0.4

Othe r.*

0.5

Brief Indication of Food Preferences

Strictly vegetarian and some vegetables are forbidden. In recent years the rules have not been strictly adhered to.

Source: http://www .nationmaster.com /encyclopedia/demo graphics-of-India. (Accessed Oct 2011). Punjab for Health-Care Workers. See http://www.hospitalconnect.com/healthcareworkforce/content/PunjabiforHealthCare Workers.pdf (Accessed Oct 201 1). * Jews, Parsis, Bahais, tribal animists and non-religous.

D. Trade 1. Data Sources and Valuations In this and following sections, trade data is presented and analysed. Unless otherwise indicated, all trade data has been obtained from the Global Trade Atlas, a product of: Global Trade Information Services, Inc. -GTI2218 Devine Street Columbia, SC 29205 USA Tel: (803) 765-1860 Fax: (803) 799-5589 E-Mail: [email protected]. The data reported for India is supplied to GTI by the Indian Ministry of Commerce and is evaluated CIF for imports and FOB for exports. At the time of the analysis, data for 2010 is the latest full year available. CIF (Cost, Insurance and Freight): The landed value of merchandise at the first port of arrival in the importing country. It is computed by adding “Import Charges” to the “Customs Value” and therefore excludes import duties. FOB (Free On Board): The value of exports as they are moved onto the ship at the port of export. The buyer bears all costs and risks of loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export. This term is used only for sea or inland waterway transport. For other modes of transport the FCA (Free Carrier) term should be used.

13

2. Currencies Currency designations used in this paper are the ISO 4217 codes. Specifically: Canadian Dollar . . . . CAD; Indian Rupee . . . . . . . INR; United States Dollar . USD. For a complete list of the ISO currency codes see the website: www.xe.com/iso4217.htm. (Nov 2011).

3. Imports In 2010, India imported a total of CAD 361,083.6 million worth of merchandise from many countries. The top five two-digit-HS7 categories were: Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes (HS: 27); Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals; Precious Metal Clad Metals, Articles Thereof; Imitation Jewelry; Coin (HS: 71); Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Parts Thereof (HS: 84); Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers, Television Recorders and Reproducers, Parts and Accessories (HS 85); Organic Chemicals (HS 29). India imported a total of CAD 13,767.4 million worth of agricultural, agri-food & seafood products8 from many countries. The top five HS categories were: Palm Oil & its Fractions, Not Chemically Modified (HS: 1511) . . . . . . . . Edible Vegetables and Certain Roots and Tubers (HS: 07) . . . . . . . . . . . . . Edible Fruit and Nuts; Peel of Citrus Fruit or Melons (HS: 08) . . . . . . . . . Soybean Oil & its Fractions, Not Chemically Modified (HS: 1507) . . . . . . Sugars and Sugar Confectionery (HS: 17) . . . . . . . . . . . . . . . . . . . . . . . . . .

CAD 4,636.8 million; CAD 1,933.0 million; CAD 1,357.2 million; CAD 1,149.7 million; CAD 1,069.6 million.

The five most important sources of agricultural, agri-food & seafood imports were: Indonesia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Argentina . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CAD 4,152.0 million; CAD 964.8 million; CAD 892.6 million; CAD 849.8 million; CAD 836.0 million.

Canada ranked 7th, supplying CAD 568.3 million worth of agriculture, agri-food and seafood products to India. The top five HS categories were: 14

Edible Vegetables and Certain Roots and Tubers (HS: 07) . . . . . . . . . CAD 557.2 million; Sugars and Sugar Confectionery (HS: 17) . . . . . . . . . . . . . . . . . . . . . . CAD 2.7 million; Residues and Waste from the Food Industries; Prepared Animal Feed (Fodder) (HS: 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CAD 2.7 million; Miscellaneous Edible Preparations (HS: 21) . . . . . . . . . . . . . . . . . . . . CAD 1.3 million; Cocoa and Cocoa Preparations (HS: 18) . . . . . . . . . . . . . . . . . . . . . . . . CAD 751,000.

4. Exports In 2010, India exported a total of CAD 229,277.5 million worth of merchandise to many countries. The top five two-digit-HS categories were: Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes (HS: 27); Natural or Cultured Pearls, Precious or Semiprecious Stones, Precious Metals; Precious Metal Clad Metals, Articles Thereof; Imitation Jewelry; Coin (HS: 71); Vehicles, Other than Railway or Tramway Rolling Stock, and Parts and Accessories Thereof (HS: 87); Electrical Machinery and Equipment and Parts Thereof; Sound Recorders and Reproducers, Television Recorders and Reproducers, Parts and Accessories (HS: 85); Organic Chemicals (HS: 29). India exported a total of CAD 23,208.1 million worth of agricultural, agri-food & seafood products. The top five HS categories were: Cotton, not Carded or Combed (HS: 5201) . . . . . . . . . . . . . . . . . . . . Cereals (HS: 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates (HS: 03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Residues and Waste from the Food Industries; Prepared Animal Feed (HS: 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Coffee, Tea, Mate and Spices (HS: 09). . . . . . . . . . . . . . . . . . . . . . .

CAD 3,059.4 million; CAD 3,012.5 million; CAD 2,231.4 million; CAD 2,130.1 million; CAD 2,064.8 million.

The five most important markets for India’s agricultural, agri-food & seafood exports were: China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . United Arab Emirates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CAD 2,704.1 million; CAD 1,656.5 million; CAD 1,621.7 million; CAD 1,258.9 million;

Vietnam . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CAD 1,211.7 million. Canada ranked 32nd, taking CAD 167.8 million worth of India’s agri-food and seafood exports. The top five HS categories were: Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates (HS: 03) . . . Coffee, Tea, Mate and Spices. (HS: 09) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cereals (HS: 10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Preparations of Vegetables, Fruit, Nuts or Other Parts of Plants (HS: 20) . . . . Oil Seeds and Oleaginous Fruits; Miscellaneous Grains, Seeds, and Fruit; Industrial or Medicinal Plants; Straw and Fodder (HS: 12) . . . . . . . . . . . . .

CAD 44.8 million; CAD 25.1 million; CAD 18.1 million; CAD 15.2 million; CAD 11.4 million.

E. International Transportation - Canada to India 1. Ocean A number of shipping companies provide container services from Vancouver BC and Halifax NS to India, either direct or with transshipments. Exporters may contact a freight forwarder to arrange shipping and transshipping. Coordinates of freight forwarders may be found in the telephone directories of most cities and at the following website: www.superpages.ca (Nov 2011). A list of shipping companies serving Vancouver is available at the website: http://portmetrovancouver.com/en/users/landoperations/terminalsandfacilities/container/container carriersandberthschedule.aspx. (Nov 2011). Cosco shipping line serves the Port of Prince Rupert, B.C. See website: http://www.cosco-usa.com/fpdb/Services/schedules.aspx. (Nov 2011). From Prince Rupert, Cosco ships primarily to China but transshipments are possible - contact a freight forwarder. A list of international shipping companies serving Montreal is available at the website: http://www.port-montreal.com/site/3_0/3_2.jsp?lang=en. (Nov 2011). A list of shipping companies serving Halifax is available at the website: http://www.portofhalifax.ca/english/cargo/sailing-schedule/index.html. (Nov 2011).

2. Air Freight Many airlines serve Canadian airports with international cargo services. For example, Vancouver International Airport is served by more than 45 air carriers, that accept cargo. A list of air carriers serving Vancouver International Airport is available at the following website: http://www.yvr.ca/en/business-at-YVR/cargo/Cargo-Village/Carriers.aspx. (Nov 2011) A list of freight forwarders serving Vancouver International Airport is available at the 16

following website: http://www.yvr.ca/en/business-at-YVR/cargo/Cargo-Village/Freight-Forwarders.aspx. (Jun 2011). A list of air carriers and air freight forwarders serving Calgary International Airport is available at the following website: http://www.calgaryairport.com/Default.aspx?cid=682&lang=1 (Nov 2011). A list of air carriers and freight forwarders serving Winnipeg International Airport is available at the following website: http://www.waa.ca/business/cargo/airlines (Nov 2011). A list of air carriers serving Toronto International Airport is available at the following website: http://www.torontopearson.com/PearsonContent.aspx?id=903 (Nov 2011). A list of air carriers serving the airports of Montreal is available at the following website: http://www.admtl.com/Business/Cargo/CarriersAndIntegrators.aspx (Feb 2012). A list of air carriers and freight forwarders serving Halifax International Airport is available at the following website: http://www.hiaa.ca/default.asp?mn=70.1.261.286#AirCarriersCargo (Feb 2012).

F. Economic 1. Historical Development The Indus Valley civilization dates back at least 5,000 years. Aryan tribes from the northwest invaded about 1500 BC; their merger with the earlier Dravidian inhabitants created the classical Indian culture. Arab incursions starting in the 8th century and Turkish in the 12th were followed by those of European traders, beginning in the late 15th century. By the 19th century, Britain had assumed political control of virtually all Indian lands. Indian armed forces in the British army played a vital role in both World Wars. Nonviolent resistance to British colonialism brought independence in 1947. The subcontinent was divided into the secular state of India and the smaller Muslim state of Pakistan - split into East Pakistan and West Pakistan. Wars between India and Pakistan resulted in East Pakistan becoming the separate nation of Bangladesh. Despite impressive gains in economic investment and output, India faces pressing political and economic problems such as the ongoing dispute with Pakistan over Kashmir, overpopulation, environmental degradation, extensive poverty, and ethnic and religious strife.9 2. Recent Conditions India's diverse economy includes traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Between Q3 2010 and Q3 2011, India’s GDP increased 6.9 percent (The Economist Jan 21-27, 2012). In 2011, almost 18 percent of the country’s GDP originated in the Agriculture, Hunting and Forestry sectors. See Table 14. In 2011, 52.9 percent of the population between the ages of 15 and 64 was employed. Of 17

these, 52.8 percent were in the Agriculture, Hunting, Forestry and Fishing sectors, down from 56.5 percent in 2006. See Table 15. Government controls on foreign trade and investment have been reduced for some products, but high tariffs for agricultural and agri-food products remain (averaging 36.04 percent for all dutiable items from all countries). Tariff rates on agricultural and agri-food products that are imported from Canada averages 35.11 percent. The average tariff rates on these products weighted by the value of actual imports was 10.30 percent. See Table 5. Privatization of government-owned industries has proceeded slowly, and continues to generate political debate. Continued social, political, and economic rigidities hold back needed initiatives.

Table 5. Average Tariff Rates Applied on Agricultural, Agri-food, Fish and Seafood Products, 2008. India. Source Country / Region

Simple Average Tariff by Tariff Line (%) a

Weighted Tariff Rate

(%) b

All Sources

36.04

23.38

NAFTA

36.04

15.34

Canada

35.11

10.30

Australia

12.67

EU

30.05

USA

24.75

China

30.48

Myanmar

10.00

Malaysia

27.37

Ukraine

10.00

Russia

10.38

18

Source Country / Region

Simple Average Tariff by Tariff Line (%) a

Weighted Tariff Rate

(%) b

Source: Tariff Analysis Facility of the WTO. https://tariffanalysis.wto.org/welcome.aspx?Return Url=%2f (Accessed No v 2011). Notes: a Simple Average = Sum of Duties / Number of Tariff Lines. b W eighted Average = (Sum of (Tariff Rate * Impo rt Value)) / Sum of Impo rt Values. The tariff on all fish and seafood products from all sources is 30 %.

India is capitalizing on its large number of well-educated people skilled in the English language to become a major exporter of software services and software workers. Despite strong growth, the World Bank and others worry about the combined state and federal budget deficit. The public debt was 64.2 percent of GDP in 2010 and expected to be 61.9 percent in 2011. The budget deficit in 2011 is expected to be 5.4 percent of GDP. The huge and growing population is the fundamental social, economic, and environmental problem.

3. Determinants of Food Demand Quantitatively, the rate of increase in the effective demand for agricultural, agri-food & seafood products is influenced by the rates of change of: population, product prices, income per person / household and income distribution. Qualitatively, the types of products demanded by consumers are determined by their tastes and preferences which are in turn influenced by the cultures that make up today’s India and their knowledge and acceptance of foreign cuisines. Income level also has an important influence on the level of quality demanded. Table 6. Determinants of Changes in the Effective Demand for Food. 2005 to 2011. Item

Value (%)

Population, Annual Change.

1.45

Consumer Price Index, Annual Change.

9.02

19

Item

Value (%)

Food and Non- Alcoholic Beverage Price Index, Annual Change. Disp osab le Inco me p er Household Annual, Change. * Numb er of Households in the Disp osab le Inco me R ange Int’l $ (PPP) 10,000 to 74,999, Annual Change.

9.37

14.40 11.47

Source: Euromo nitor Internation al. Note: Measured in IN Rs.

Population Between 2005 and 2011, the Indian population was increasing at a rate of 1.45% per year, reaching an estimated 1.21 billion people. The rate of increase was moderately rapid compared to some other countries. This rate of increase and the size were very positive factors in the potential demand for food products. Prices Between 2005 and 2011, the price index of consumer goods generally were increasing rapidly at 9.02 percent per year and the price index of food and non-alcoholic beverages was increasing even faster at 9.37 percent per year. Generally this was a negative factor affecting the effective demand for food but may be offset by increases in income Income Between 2005 and 2011, disposable income per household was increasing at 14.40 percent per year reaching INR 324,867 per year. This rate of increase was very positive and offset the increases in prices. Income Distribution Between 2005 and 2011, the middle income household group (Int’l $ 10,000 to 74,999), was increasing at a rate of 11.47 percent per year reaching 143.4 million households in 2011. The overall national distribution of income was becoming slightly less equitable as the lower income groups still make up about 35 percent of households. The level of income inequality is indicated by the Gini ratio10. In 2005 it was calculated as 37.8; by 2011 it had reached 39.9 (compared to Canada’s ratio of 38.5 in 2011). Of all the Indian states/union territories, Bihar had the lowest average Net State Domestic Product (NSDP) per person at CAD 436 in 2011. Goa had the highest NSDP per person at CAD 4,355. 20

4. Consumer Expenditures on Food and Non-Alcoholic Beverages, by Political Division Total expenditure on food and non-alcoholic beverages in a political division is influenced by population, income and to some extent the preferences of consumers for food. Household expenditure on food and non-alcoholic beverages is an average and is not affected by the size of the population but is influenced by income and preferences. The proportion of total expenditures allocated to food and non-alcoholic beverages generally decreases as income increases. This effect may be somewhat softened as consumers with increasing income demand higher quality, and higher priced, food.

Table 7. Expenditure on Food and Non-alcoholic Beverages in Selected Political Divisions of India. Political Division

Total Expenditure on Food & NonAlcoholic Beverages 2011

Expenditure per Household on Food & Non-Alcoholic Beverages (CAD)

CAD (Million)

%

295 ,311 .0

100.00%

955 .7

1,28 7.1

32.52%

26.30%

Andhra Prad esh.

20,6 86.1

7.00%

843 .6

1,07 1.4

31.72%

26.29%

Bihar.

19,8 74.3

6.73%

942 .8

1,19 9.5

45.97%

35.03%

Delhi.

6,47 4.8

2.19%

1,30 9.4

1,73 4.9

23.80%

17.74%

892 .6

0.30%

2,13 0.6

2,28 0.7

24.89%

23.86%

4,12 3.4

1.40%

1,40 0.7

1,94 2.4

34.08%

28.91%

30,5 48.7

10.34%

982 .0

1,33 4.8

27.98%

21.61%

440 .7

0.15%

1,53 9.8

2,02 8.1

33.57%

21.96%

Orissa.

8,55 8.8

2.90%

761 .1

966 .9

41.11%

33.93%

Punjab.

8,40 5.7

2.85%

1,30 0.5

1,67 5.6

27.59%

22.00%

Sikkim.

180 .8

0.06%

1,04 0.0

1,38 8.8

34.43%

28.09%

Uttar Pradesh.

42,7 61.3

14.48%

999 .3

1,34 1.1

34.47%

28.13%

W est Bengal.

23,5 69.7

7.98%

946 .7

1,27 7.3

35.47%

30.99%

India.

Goa. Jammu & Kashmir. Maharashtra. Mizoram.

2006

2011

Proportion of Total Expenditure Allocated to Food & No n-Alcoholic Beverages (% )

Source: Based on d ata from Euromonitor International (Accessed Jan 201 2).

21

2006

2011

5. Determinants of Food Imports Many factors influence the amount of food imported into a country including: total food demand, productive capacity, exchange rate movements, transportation costs, tariffs and various non-tariff trade barriers. The capacity of a country to produce food is in turn influenced by the agricultural and fishery resources it possesses, the levels of technology and the number of managers with modern management skills. Food Demand Between 2006 and 2011, the expenditure on food and non-alcoholic beverages, measured in current INR prices was increasing at a rate of 11.60 percent per year. Measured in CADs it is increasing at a rate of 7.50 percent per year, reaching CAD 300,752 million in 2011. Measured at fixed 2011 prices, Indian expenditure on food was increasing at a rate of 1.77 percent per year. On a per household basis, Indian households were increasing expenditure (measured in current INRs) on food and non-alcoholic beverages at a rate of 9.74 percent per year. In CADs, household expenditures on food and non-alcoholic beverages was increasing at a rate of 5.72 percent per year, reaching CAD 1,311 in 2011. Productive Capacity Table 8 presents the production data for selected crops. The FAO food balance sheet for India indicates that in 2007, India was almost self sufficient in wheat and “other pulses” and fully self sufficient in rice, millet, sorghum and rapeseed & mustardseed. It was not self sufficient in beans, peas and soybean oil. In February 2012, FAO food balance sheets for 2010 were not available

Table 8. Production and Annual Increases of Selected Crops, India. Crop

2004-2010 Change (% per Year)

Rice, Pad dy.

2010 Production (t)

-0.3

120,620,000

W heat.

2.8

80,710,000

Pulses.

3.3

17,110,000

Millet.

-0.8

10,940,000

0.6

6,980,000

Sorghum.

22

Crop

2004-2010 Change (% per Year)

Rapeseed. Green Bea ns.

2010 Production (t)

-1.4

6,410,000

7.0

582,200

Source: FAO (Accessed Feb 20 12).

Exchange Rates Since January 1995 the value of the INR has been steadily declining at about -3.99 percent per year in relation to the CAD. This made Canadian products increasingly expensive in India. While this was a negative influence on Indian food imports it was offset by other positive factors. Transportation Costs Container transportation costs depend on many factors including: type of container required (reefer or not); size of container; distance to be travelled and; availability of appropriated containers. For the latest information contact a freight forwarder. See your local phone book or the website http://www.superpages.ca/.

Figure 4. Value of the INR Expressed in CADs (CA D per IN R). Janua ry 1993 to February 2012. Source: Pacific Exchange Rate Service.

Tariffs Tariffs can be a major barrier to imports and have been the subject of many bilateral and multilateral discussions and agreements. The effectiveness of tariffs in keeping out imports depends on the price of a product in India and the total cost (including tariffs paid) of getting an imported product to the Indian buyer. Table 9 indicates the Indian tariffs charged on selected products.

Table 9. Tariff Rates on Selected Imported Products. India. 2008. HS Code Description Tariff Rate (%) 071310

Peas, Dried Shelled, Including Seed.

10%

071331

Beans (Vigna Mungo (L.) Hepper Etc), Dried Shelled.

10%

071339

Beans Nesoi, Dried Shelled, Including Seed.

10%

23

HS Code

Description

Tariff Rate (%)

071340

Lentils, Dried Shelled, Including Seed.

10%

071390

Leguminous Vegetables N esoi, D ried Shell, Including Seed.

10%

080810

Apples, Fresh.

50%

100110

Durum W heat.

50%

150710

Soybean Oil & Fractions, Crude, Whether or Not Degummed.

0%

151211

Sunflower-seed or Safflower Oil, Crude, and Fractions Thereof, Etc.

0%

2106901900 2106909900

Foo d Preparations Nesoi.

2106901901 2106909901

Food P reparations Nesoi Other, Compound Alcoholic Preparations (Other than Those Based on Odoriferous Substances) of a Kind Used for Manufacture of Beverages, of Alcoholic Strength by Vo lume E xceeding 0 .5% Vo lume.

150%

Food P reparations Nesoi Other [Excluding Compound Alcoholic Preparations (Other than Those B ased on Od oriferous Substances) of a Kind Used for M anufac ture of B evera ges, of A lcoho lic Strength by V olume Exceed ing 0.5 % V olume].

30%

2106901902 2106909902

90%

230990

Animal Feed Preparations Except Dog or Cat Food, Put up for Retail Sale.

510119

W ool, N ot Ca rded or Comb ed, G reasy, N esoi.

Source:

30% 5%

Tariff Analysis Facility of the WTO. https://tariffanalysis.wto.org/welcome.aspx?ReturnUrl=%2f (Accessed Nov 2011).

G. The Regions of India 1. East & Northeast India The East & Northeast Region consists of: Andaman & Nicobar Islands; Arunachal Pradesh; Assam; Bihar; Chhattisgarh; Jharkhand; Manipur; Meghalaya; Mizoram; Nagaland; Orissa; Sikkim; Tripura and; West Bengal. In 2011 the region had a population of 341.6 million and an NSDP per person of CAD 783. Four jurisdictions had values of NSDP per person higher than the country average. See Table 12. The Andaman & Nicobar Islands Union Territory had the highest 2011 NSDP per person (CAD 2,418) in the region but a population at only 379,944. Sikkim is also an important market with an NSDP of CAD 1,977 per person and a population of 607,688.

24

2. North India The North India Region consists of: Chandigarh; Delhi; Haryana; Himachal Pradesh; Jammu & Kashmir; Punjab; Rajasthan; Uttar Pradesh and; Uttaranchal. In 2011 the region had a population of 368.6 million and an NSDP per person of CAD 1,054. Six of the jurisdictions had values of NSDP per person higher than the country average. See Table 12. The most attractive market in this region is Chandigarh Union Territory which had the highest 2011 NSDP per person (CAD 4,172) in the region and 1.1 million people. Delhi Union Territory and Capital Territory is also an important market with an NSDP of CAD 3,283 per person and a population of 16.8 million. 3. South India The South India Region consists of: Andhra Pradesh; Karnataka; Kerala; Lakshedweep Union Territory; Pondicherry Union Territory and; Tamil Nadu. In 2011 the region had a population of 252.6 million and an NSDP per person of CAD 1,510. All six jurisdictions had NSDPs per person greater than the national average. See Table 12. The most attractive market in this region is Pondicherry which has the highest 2011 NSDP per person (CAD 2,208) in the region and a population of 1.2 million. Kerala is also an important market with an NSDP per person of CAD 1,707 and a population of 33.4 million. 4. West India The West India Region consists of: Dadra & Nagar Haveli Union Territory; Daman & Diu Union Territory; Goa; Gujarat; Madhya Pradesh and; Maharashtra. In 2011 the region had a population of 247.4 million and an NSDP per person of CAD 1,533. Four of the jurisdictions had NSDPs per person above the national average. See Table 12. The most attractive market in this region is Goa which had the highest 2011 NSDP per person (CAD 4,355) in the region and a population of 1.5 million. Maharashtra is also an important market with an NSDP per person of CAD 1,947 and a population of 112.4 million.

IV.

RISK FACTORS A. Internal Political/Economic Conditions • Increasing economic disparities among consumers and regions are emerging as a political risk capable of provoking serious socio-political tensions that could lead to localized violence from time to time. The states likely to be advancing economically are: Gujarat, Haryana, Kerala, Maharashtra, Punjab and Tamil Nadu. Those likely to be lagging economically are: Assam, Bihar, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh. Although this is essentially an internal situation it can, at times, interrupt the flow of imports and negatively affect the solvency of Indian importers. • An ongoing Maoist insurgency is becoming increasingly violent. The insurgents operate in several rural states and have targeted security forces, government 25

•

•

infrastructure and extractive companies. Corruption remains a problem. Several scandals came to light in late 2010 and early 2011, particularly in the organisation of the Commonwealth Games and the granting of mobile telephony licences. Corruption in general can increase the cost of doing business in India. Inadequate infrastructure is a problem in India. Unreliable electric power and lack of road maintenance are examples of this problem which is rooted in the constraints of public sector finances.

B. External Political/Economic Conditions India has major disputes with Pakistan and China. • • •

India disputes Pakistan’s claim to Kashmir and questions its claim to have stopped sponsoring terrorism in Kashmir. Relations with China are strained by its claim to Arunachal Pradesh and a portion of land adjacent to Jammu and Kashmir. India has recently been the victim of terrorism and occasionally, attacks disrupt business activities.

Any outbreak of hostilities between India and its neighbours could disrupt trade.

C. Handling Risks of International Trade Some risks are normally covered by commercial cargo insurance in accordance with minimum cover of the Institute Cargo Clauses (Institute of London Underwriters) or some similar clause. This insurance normally covers the standard risks involved in transporting goods, such as accidents and weather. If a Canadian exporter expects to incur costs, or receive payment in INRs, consideration may be given to hedging against currency risks by participating in the futures market. This strategy is not appropriate in all situations and the exporter should obtain advice from a bank or other trusted expert. Additional risks might be covered by Accounts Receivable Insurance and other products similar to those offered by Export Development Canada (EDC). The availability, terms and costs of this insurance will depend on conditions in the importing country, the reputation of the importer and EDC policy. The risks covered are: • • •

Accounts Receivable Insurance covers your receivables up to 90 per cent of losses resulting from commercial or political risks; Single Buyer Insurance covers unlimited sales to one customer for 180 days; Contract Frustration Insurance covers up to 90 per cent of your losses for one export contract; 26

• •

Political Risk Insurance protects your overseas assets, including equipment and manufacturing facilities; Performance Security Insurance covers up to 95 per cent of your losses if your customer demands payment of a bond issued by your bank without valid reason.

For more detailed information see the website www.edc.ca.

V. PRODUCT ANALYSIS11 A. Selected Products Imported by India From Canada Following are descriptions of selected food products imported by India from many countries including Canada. Unless otherwise specified, the average annual value of imports refer to the six years 2005 to 2010. 030613

Shrimps and Prawns, Including in Shell, Frozen The average annual value of imports was CAD 6.0 million. In 2010, India imported CAD 4.3 million worth from: Thailand (CAD 1.3 million); Unidentified Country (CAD 1.0 million); Pakistan (CAD 782,000); the UK (CAD 501,000); the USA (CAD 169,000) and; Canada (86,000). Seven other countries supplied CAD 372,000 worth. 040410

Whey & Modified Whey Whether or Not Concentrated Containing Added Sweeteners The average annual value of imports was CAD 5.0 million. In 2010, India imported CAD 11.6 million worth from: the UK (CAD 2.4 million); France (CAD 2.2 million); the USA (CAD 2.0 million); New Zealand (CAD 1.6 million); Denmark (CAD 1.6 million) and; Canada (CAD 493,000). Ten other countries supplied CAD 1.2 million worth. 051000

Ambergris, Castoreum Etc; Glands Etc. for Pharmacy The average annual value of imports was CAD 717,000. In 2010, India imported CAD 1.7 million worth from: the USA (CAD 1.0 million); Canada (CAD 478,000); New Zealand (CAD 96,000); Italy (CAD 46,000) and; Pakistan (CAD 21,000). Three other countries supplied CAD 20,000 worth. 071310

Peas, Dried Shelled, Including Seed The average annual value of imports was CAD 515.9 million. In 2010, India imported CAD 516.7 million worth from: Canada (CAD 396.6 million); the USA (CAD 74.0 million); Australia (CAD 21.7 million); Russia (CAD 8.6 million) and; the Ukraine (CAD 7.6 million). Sixteen other countries supplied CAD 8.3 million worth. 071320

Chickpeas (Garbanzos), Dried Shelled, Including Seed The average annual value of imports was CAD 111.1 million. In 2010, India imported CAD 89.0 million worth from: Australia (CAD 66.0 million); the USA (CAD 10.4 million); Tanzania (CAD 7.5 million); Canada (CAD 2.5 million) and; Mexico (CAD 1.4 million). Twelve other countries supplied CAD 1.2 million worth. 27

071340

Lentils, Dried Shelled, Including Seed The average annual value of imports was CAD 97.9 million. In 2010, India imported CAD 215.4 million worth from: Canada (CAD 158.1 million); the USA (CAD 46.5 million); Australia (CAD 7.1 million); Russia (CAD 3.3 million) and; Brazil (CAD 185,000). Five other countries supplied CAD 379,000 worth. 080131

Cashew Nuts, Fresh or Dried, in Shell The average annual value of imports was CAD 560.7 million. In 2010, India imported CAD 590.3 million worth from: Cote d’ Ivoire (CAD 169.2 million); Tanzania (CAD 125.7 million); Benin (CAD 81.1 million); Guinea-Bissau (CAD 61.0 million); Ghana (CAD 47.4 million) and; Canada (CAD 112,000). Twenty-two other countries supplied 105.6 million worth. 080211

Almonds, Fresh or Dried, in Shell The average annual value of imports was CAD 198.0 million. In 2010, India imported CAD 252.8 million worth from: the USA (CAD 221.0 million); Australia (CAD 24.1 million); China (CAD 3.7 million); Afghanistan (CAD 1.3 million); the United Arab Emirates (CAD 469,000) and; Canada (CAD 138,000). Fifteen other countries supplied CAD 2.0 million worth. 090940

Seeds of Caraway The average annual value of imports was CAD 3.7 million. In 2010, India imported CAD 4.7 million worth from: Afghanistan (CAD 3.4 million); Finland (CAD 458,000); Egypt (CAD 444,000); Canada (CAD 130,000) and; Syria (CAD 106,000). Three other countries supplied CAD 170,000 worth. 120750

Mustard Seeds, Whether or Not Broken The average annual value of imports was CAD 1.3 million. In 2010, India imported CAD 222,000 worth from Canada. 151419

Rapeseed / Colza Oil & Fractions, Low Erucic Acid, Nesoi The average annual value of imports was CAD 39,000. In 2010, India imported CAD 227,000 worth from: Canada (CAD 227,000) and; Japan (less than CAD 1,000). 151499

Rapeseed, Colza, Mustard Oil & Fractions Thereof, Nesoi The average annual value of imports was CAD 59,000. In 2010, India imported CAD 168,000 worth from: Canada (CAD 145,000); Italy (CAD 16,000) and; Singapore (CAD 7,000). 170199

Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi The average annual value of imports was CAD 73.7 million. In 2010, India imported CAD 232.1 million worth from: Brazil (CAD 109.7 million); Thailand (CAD 71.5 million); the United Arab Emirates (CAD 18.4 million); Spain (CAD 10.2 million); Malaysia (CAD 6.4 million) and; Canada (CAD 98,000). Twenty-one other countries supplied CAD 15.7 million worth. 170211

Lactose & Lactose Syrup Containing 99% or More Lactose by Weight 28

The average annual value of imports was CAD 16.6 million. In 2010, India imported CAD 24.8 million worth from: Germany (CAD 8.0 million); the Netherlands (CAD 6.0 million); the USA (CAD 5.5 million); Canada (CAD 2.3 million) and; New Zealand (CAD 1.6 million). Twenty other countries supplied CAD 1.3 million worth. 170490

Sugar Confection (Including White Chocolate), Not Containing Cocoa, Nesoi The average annual value of imports was CAD 8.4 million. In 2010, India imported CAD 13.3 million worth from: China (CAD 2.1 million); Australia (CAD 2.1 million); Indonesia (CAD 2.0 million); Thailand (CAD 1.7 million); Malaysia (CAD 1.3 million) and; Canada (CAD 265,000). Thirty-six other countries supplied CAD 3.9 million worth. 180100

Cocoa Beans, Whole or Broken, Raw or Roasted The average annual value of imports was CAD 21.4 million. In 2010, India imported CAD 38.4 million worth from: Indonesia (CAD 13.4 million); the Dominican Republic (CAD 10.4 million); Ghana (CAD 5.6 million); Ecuador (CAD 4.3 million); Uganda (CAD 2.0 million) and; Canada (CAD 742,000). Four other countries supplied CAD 2.0 million worth. 210210

Yeasts, Active The average annual value of imports was CAD 2.7 million. In 2010, India imported CAD 3.9 million worth from: China (CAD 2.2 million); the USA (CAD 463,000); Canada (CAD 316,000); the UK (CAD 234,000) and; France (CAD 186,000). Twenty-five other countries supplied CAD 507,000 worth. 210610

Protein Concentrates & Textured Protein Substances The average annual value of imports was CAD 5.5 million. In 2010, India imported CAD 11.3 million worth from: the USA (CAD 7.9 million); New Zealand (CAD 695,000); the Netherlands (CAD 411,000); Canada (CAD 387,000) and; Switzerland (CAD 361,000). Twentythree other countries supplied CAD 1.5 million worth. 210690

Food Preparations Nesoi The average annual value of imports was CAD 28.0 million. In 2010, India imported CAD 52.7 million worth from: the USA (CAD 16.2 million); Thailand (CAD 6.1 million); Singapore (CAD 6.1 million); the Netherlands (CAD 6.0 million); Denmark (CAD 4.0 million) and; Canada (CAD 528,000). Fifty-seven other countries supplied CAD 13.8 million worth. 220710

Ethyl Alcohol, Undenatured, Alcohol Not under 80% by Volume The average annual value of imports was CAD 5.8 million. In 2010, India imported CAD 758,000 worth from: Canada (CAD 240,000); Germany (CAD 149,000); Italy (CAD 147,000); the UK (CAD 123,000); China (CAD 59,000). Five other countries supplied CAD 42,000 worth.

29

220830

Whiskies The average annual value of imports was CAD 41.3 million. In 2010, India imported CAD 58.3 million worth from: the UK (CAD 43.3 million); the United Arab Emirates (CAD 2.8 million); China (CAD 2.3 million); the USA (CAD 1.8 million); the Netherlands (CAD 1.8 million) and; Canada (CAD 120,000). Twenty-seven other countries supplied CAD 6.2 million worth. 220870

Liqueurs and Cordials The average annual value of imports was CAD 5.5 million. In 2010, India imported CAD 7.9 million worth from: the UK (CAD 5.8 million); France (CAD 800,000); the Netherlands (CAD 390,000); the USA (CAD 315,000); Italy (CAD 193,000) and; Canada (CAD 91,000). Twenty other countries supplied CAD 312,000 worth. 230690

Oilcake Etc. Resulting from the Extraction of Vegetable Fats and Oils Nesoi The average annual value of imports was CAD 5.7 million. In 2010, India imported CAD 8.9 million worth from: Nepal (CAD 6.0 million); Canada (CAD 2.3 million); Ghana (CAD 562,000); Italy (CAD 71,000) and; Sri Lanka (CAD 31,000). 230990

Animal Feed Preparations Except Dog or Cat Food, Retail Packaged The average annual value of imports was CAD 94.7 million. In 2010, India imported CAD 149.7 million worth from: Sri Lanka (CAD 43.6 million); China (CAD 22.8 million); Thailand (CAD 13.5 million); the USA (CAD 10.8 million); Germany (CAD 8.9 million) and; Canada (382,000). Thirty-seven other countries supplied CAD 49.8 million worth. 410190

Butts / Bends / Bellies of Bovine / Equine Animals The average annual value of imports was CAD 27.8 million. In 2010, India imported CAD 32.0 million worth from: the Netherlands (CAD 3.4 million); the USA (CAD 3.3 million); New Zealand (CAD 3.1 million); Italy (CAD 2.5 million); Myanmar (CAD 1.8 million) and; Canada (CAD 282,000). Fifty-seven other countries supplied CAD 17.6 million worth.

B. Selected Products Imported by India But Currently Not From Canada Unless otherwise specified, the average annual value of imports refers to the six years 2005 to 2010. 030269

Fish, Nesoi, with Bones, Fresh or Chilled The average annual value of imports was CAD 24.2 million. In 2010, India imported CAD 39.4 million worth from: Bangladesh (CAD 38.6 million); Japan (CAD 572,000); Thailand (CAD 242,000) and; the Netherlands (CAD 11,000). In 2010, Canada exported these products to 20 other countries.

30

040210

Milk & Cream, Concentrated, Sweetened, Powdered, Granules / Other Solids, Not over 1.5% Fat The average annual value of imports was CAD 11.8 million. In 2010, India imported CAD 58.1 million worth from: Australia (CAD 41.3 million); New Zealand (CAD 15.0 million); Belarus (CAD 1.3 million); the Netherlands (CAD 249,000) and; Denmark (CAD 178,000). Five other countries supplied CAD 177,000 worth. In 2010, Canada exported these products to 31 other countries. 040229 Milk & Cream, Concentrated, Sweetened, Powdered, Granules / Other Solids, over 1.5% Fat The average annual value of imports was CAD 6.3 million. In 2010, India imported CAD 34.2 million worth from: New Zealand (CAD 32.7 million); Australia (CAD 965,000); the Netherlands (CAD 343,000); Denmark (CAD 73,000) and; the United Arab Emirates (CAD 63,000). Four other countries supplied CAD 74,000 worth. Canada last supplied less than CAD 1,000 these products to India in 2008. In 2010, Canada exported these products to eight other countries. 040590

Fats and Oils Derived from Milk, Nesoi The average annual value of imports was CAD 24.5 million. In 2010, India imported CAD 75.8 million worth from: New Zealand (CAD 73.7 million); Nepal (CAD 1.8 million); Uganda (CAD 245,000) and; Kenya (CAD 46,000). In 2010, Canada exported these products to two other countries. 050100

Human Hair, Unworked and Waste of Human Hair The average annual value of imports was CAD 8.0 million. In 2010, India imported CAD 16.6 million worth from: Myanmar (CAD 12.7 million); China (CAD 2.7 million); Thailand (CAD 758,000); Singapore (CAD 436,000) and; Vietnam (CAD 49,000). Three other countries supplied CAD 15,000 worth. In 2010, Canada exported these products to one other country. 071333

Kidney Beans & White Pea Beans, Dried Shelled, Including Seed The average annual value of imports was CAD 43.6 million. In 2010, India imported CAD 69.3 million worth from: China (CAD 57.4 million); Myanmar (CAD 6.1 million); Ethiopia (CAD 4.4 million); Peru (CAD 512,000) and; Mozambique (CAD 308,000). Six other countries supplied CAD 617,000 worth. In 2010, Canada exported these products to 70 other countries. 071339

Beans Nesoi, Dried Shelled, Including Seed The average annual value of imports was CAD 107.8 million. In 2010, India imported CAD 96.2 million worth from: Myanmar (CAD 71.5 million); Pakistan (CAD 6.9 million); Brazil (CAD 3.9 million); Madagascar (CAD 2.6 million) and; China (CAD 2.6 million). Fifteen other countries supplied CAD 8.7 million worth. In 2010, Canada exported these products to 64 other countries.

31

071390

Leguminous Vegetables Nesoi, Dried Shelled, Including Seed The average annual value of imports was CAD 263.1 million. In 2010, India imported CAD 303.2 million worth from: Myanmar (CAD 175.5 million); Tanzania (CAD 52.8 million); Mozambique (CAD 36.7 million); Malawi (CAD 32.5 million) and; Kenya (CAD 4.9 million). Six other countries supplied CAD 722,000 worth. Canada last supplied CAD 33,000 worth of these products to India in 2009. In 2010, Canada exported these products to 14 other countries. 080212

Almonds, Fresh or Dried, Shelled The average annual value of imports was CAD 37.7 million. In 2010, India imported CAD 48.2 million worth from: the USA (CAD 18.7 million); Iran (CAD 11.3 million); Afghanistan (CAD 8.6 million); Australia (CAD 4.5 million) and; Syria (CAD 4.5 million). Four other countries supplied CAD 739,000 worth. In 2010, Canada exported these products to eight other countries. 080290

Nuts Nesoi, Fresh or Dried, Whether or Not Shelled The average annual value of imports was CAD 26.2 million. In 2010, India imported CAD 48.1 million worth from: Bangladesh (CAD 20.6 million); Nepal (CAD 12.4 million); Indonesia (CAD 10.6 million); Sri Lanka (CAD 2.6 million) and; Myanmar (CAD 875,000). Six other countries supplied CAD 1.1 million worth. In 2010, Canada exported these products to 17 other countries. 080620

Grapes, Dried (Including Raisins) The average annual value of imports was CAD 14.4 million. In 2010, India imported CAD 14.8 million worth from: Afghanistan (CAD 13.5 million); China (CAD 881,000); Pakistan (CAD 191,000); Iran (CAD 63,000) and; Thailand (CAD 51,000). Three other countries supplied CAD 42,000 worth. In 2010, Canada exported these products to 18 other countries. 080820

Pears and Quinces, Fresh The average annual value of imports was CAD 6.6 million. In 2010, India imported CAD 12.8 million worth from: China (CAD 7.3 million); the USA (CAD 3.0 million); South Africa (CAD 2.4 million); Australia (CAD 70,000) and; Chile (CAD 24,000). One other country supplied CAD 19,000 worth. Canada last supplied CAD 3,000 worth to India in 2005. In 2010, Canada exported these products to five other countries. 090240

Black Tea Fermented & Other Partly Fermented Tea Nesoi The average annual value of imports was CAD 34.9 million. In 2010, India imported CAD 45.7 million worth from: Nepal (CAD 16.3 million); Kenya (CAD 13.5 million); Indonesia (CAD 4.1 million); Vietnam (CAD 3.4 million) and; Iran (CAD 2.4 million). Twenty other countries supplied CAD 6.0 million worth. Canada last supplied less than CAD 1,000 to India in 2007. In 2010, Canada exported these products to seven other countries.

32

091010

Ginger The average annual value of imports was CAD 14.2 million. In 2010, India imported CAD 18.3 million worth from: Nepal (CAD 6.5 million); Nigeria (CAD 4.8 million); China (CAD 2.3 million); Ethiopia (CAD 2.3 million) and; Myanmar (CAD 1.8 million). Thirteen other countries supplied CAD 540,000 worth. In 2010, Canada exported this product to 12 other countries. 100110

Durum Wheat From 2006 to 2010, the average annual value of imports was CAD 20.4 million. In 2010, India imported CAD 25.9 million worth from: Australia (CAD 21.8 million); the Ukraine (CAD 2.0 million); Russia (CAD 1.4 million); Romania (CAD 509,000) and; Iran (CAD 197,000). In 2010, Canada exported these products to 27 other countries. 100190

Wheat (Other than Durum Wheat), and Meslin From 2006 to 2010, the average annual value of imports was CAD 209.6 million. In 2010, India imported CAD 78.5 million worth from: Australia (CAD 62.3 million); Iran (CAD 10.9 million); Russia (CAD 3.4 million); the Ukraine (CAD 1.3 million) and; Turkey (CAD 295,000). Four other countries supplied CAD 237,000 worth. Canada last supplied CAD 104.7 million worth to India in 2007. In 2010, Canada exported these products to 63 other countries. 120791

Poppy Seeds, Whether or Not Broken The average annual value of imports was CAD 21.7 million. In 2010, India imported CAD 32.9 million worth from: Turkey (CAD 28.8 million) and; China (CAD 4.2 million). In 2010, Canada exported these products to four other countries. 120799

Oil Seeds & Oleaginous Fruits Whether or Not Broken, Nesoi The average annual value of imports was CAD 20.4 million. In 2010, India imported CAD 15.2 million worth from: Ghana (CAD 11.1 million); Benin (CAD 1.5 million); Ethiopia (CAD 583,000); Pakistan (CAD 474,000) and; Costa Rica (CAD 382,000). Eleven other countries supplied CAD 1.1 million worth. In 2010, Canada exported these products to 23 other countries. 120991

Vegetable Seeds for Sowing The average annual value of imports was CAD 39.2 million. In 2010, India imported CAD 49.9 million worth from: Thailand (CAD 8.0 million); Chile (CAD 7.8 million); China (CAD 6.0 million); the USA (CAD 5.0 million) and; Taiwan (CAD 4.1 million). Twenty-four other countries supplied CAD 18.9 million worth. In 2010, Canada exported these products to 12 other countries. 130190

Natural Gums, Gum Resins, Resins and Balsams Nesoi The average annual value of imports was CAD 43.8 million. In 2010, India imported CAD 75.9 million worth from: Afghanistan (CAD 42.2 million); Thailand (CAD 16.5 million); Indonesia (CAD 5.9 million); Uzbekistan (CAD 1.9 million) and; China (CAD 1.5 million). Thirty-nine other countries supplied CAD 7.9 million worth. Canada last supplied less than CAD 1,000 worth of these products to India in 2007. In 2010, Canada exported these products to 19 33

other countries. 150710

Soybean Oil & Fractions, Crude, Whether or Not Degummed The average annual value of imports was CAD 807.6 million. In 2010, India imported CAD 1,148.5 million worth from: Argentina (CAD 901.4 million); the USA (CAD 157.3 million); Brazil (CAD 65.7 million); Saudi Arabia (CAD 15.7 million) and; Paraguay (CAD 4.5 million). Four other countries supplied CAD 4.0 million worth. In 2010, Canada exported these products to one other country. 151211

Sunflower-seed or Safflower Oil, Crude, Fractions, Etc The average annual value of imports was CAD 239.2 million. In 2010, India imported CAD 598.3 million worth from: the Ukraine (CAD 530.8 million); Argentina (CAD 27.9 million); Russia (CAD 23.1 million); the USA (CAD 16.3 million) and; Australia (CAD 72,000). Two other countries supplied CAD 69,000 worth. In 2010, Canada exported these products to five other countries. 170191

Cane or Beet Sugar, Refined, Solid, Added Flavour / Colour From 2009 to 2010, the average annual value of imports was CAD 53.9 million. In 2010, India imported CAD 98.6 million worth from: Thailand (CAD 37.6 million); Spain (CAD 17.5 million); Brazil (CAD 11.7 million); the United Arab Emirates (CAD 11.3 million) and; Malaysia (CAD 4.1 million). Twelve other countries supplied CAD 16.5 million worth. In 2010, Canada exported these products to 21 other countries. 180310

Cocoa Paste, Not Defatted The average annual value of imports was CAD 5.2 million. In 2010, India imported CAD 19.2 million worth from: Sri Lanka (CAD 16.9 million); Ghana (CAD 1.6 million); Cote d’ Ivoire (CAD 392,000); Singapore (CAD 191,000) and; Malaysia (CAD 101,000). In 2010, Canada exported these products to one other country. 180500

Cocoa Powder, Not Sweetened The average annual value of imports was CAD 7.4 million. In 2010, India imported CAD 15.4 million worth from: Malaysia (CAD 6.6 million); Indonesia (CAD 3.5 million); Singapore (CAD 2.7 million); China (CAD 1.3 million) and; Cote d’Ivoire (CAD 316,000). Twelve other countries supplied CAD 1.0 million worth. Canada last supplied less than CAD 1,000 worth to India in 2005. In 2010, Canada exported these products to seven other countries. 220290

Nonalcoholic Beverages, Nesoi The average annual value of imports was CAD 31.8 million. In 2010, India imported CAD 37.4 million worth from: Nepal (CAD 21.7 million); Austria (CAD 11.2 million); the USA (CAD 753,000); the United Arab Emirates (CAD 636,000) and; South Africa (CAD 583,000). Twenty-seven other countries supplied CAD 2.5 million worth. Canada last supplied less than CAD 1,000 worth to India in 2005. In 2010, Canada exported these products to 76 other countries.

34

220720

Ethyl Alcohol & Other Spirits, Denatured, of Any Strength The average annual value of imports was CAD 84.3 million. In 2010, India imported CAD 68.7 million worth from: the USA (CAD 35.6 million); Brazil (CAD 32.0 million); the United Arab Emirates (CAD 304,000); Unidentified Country (CAD 148,000) and; the UK (CAD 133,000). Eight other countries supplied CAD 509,000 worth. Canada last supplied CAD 29,000 worth to India in 2009. In 2010, Canada exported these products to 26 other countries. 500200

Raw Silk (Not Thrown) The average annual value of imports was CAD 202.9 million. In 2010, India imported CAD 200.8 million worth from: China (CAD 193.6 million); Uzbekistan (CAD 2.5 million); Malaysia (CAD 740,000); Japan (CAD 718,000) and; Thailand (CAD 659,000). Twelve other countries supplied CAD 2.6 million worth. In 2010, Canada exported these products to three other countries. 510119

Wool, Not Carded or Combed, Greasy, Nesoi The average annual value of imports was CAD 152.4 million. In 2010, India imported CAD 202.2 million worth from: Australia (CAD 121.5 million); South Africa (CAD 29.1 million); Argentina (CAD 9.6 million); Uruguay (CAD 6.1 million) and; the USA (CAD 6.0 million). Forty-four other countries supplied CAD 29.9 million worth. Canada last supplied CAD 247,000 to India in 2007. In 2010, Canada exported these products to one other country. 510121

Wool Not Carded / Combed Degreased Not Carbonized, Shorn The average annual value of imports was CAD 14.1 million. In 2010, India imported CAD 17.5 million worth from: the UK (CAD 8.2 million); Australia (CAD 6.9 million); Uruguay (CAD 1.5 million); South Africa (CAD 687,000) and; Argentina (CAD 211,000). In 2010, Canada exported these products to two other countries. 510129

Wool, Not Carded / Combed Degreased Not Carbonized Nesoi The average annual value of imports was CAD 95.5 million. In 2010, India imported CAD 89.1 million worth from: New Zealand (CAD 24.5 million); Australia (CAD 23.6 million); Pakistan (CAD 7.6 million); Russia (CAD 3.8 million) and; Turkey (CAD 3.6 million). Forty-two other countries supplied CAD 25.9 million worth. In 2010, Canada exported these products to one other country.

VI.

GRID ANALYSIS A. All Agricultural, Agri-food & Seafood Products Between 2005 and 2010, the value of Indian imports of agricultural, agri-food & seafood products from all sources increased at a rate of 18.6 percent12 per year while the value of imports from Canada increased at a rate of 27.3 percent per year from CAD 202.6 million to CAD 568.3 million. In comparison, the same imports from: Indonesia increased at a rate of 29.35 percent per year, reaching CAD 4,152.3 million in 2010; imports from Argentina increased at a rate of 1.09 percent per year reaching CAD 964.8 million in 2010 and; imports from Brazil decreased at a rate of 29.81 percent per year reaching CAD 892.8 million in 2010. Canada was gaining market share 35

in a quickly expanding market. In 2010 Canada held 4.11 percent of the market while Indonesia held 30.05 percent, Argentina held 6.98 percent and Brazil held 6.46 percent of this CAD 13,819.7 million market.

B. Agricultural Agri-food & Seafood Imports of India From Canada vs From the Whole World The annual rates of change refer to the period 2005 to 2010. 051000 Ambergris, Castoreum Etc; Glands Etc for Pharmacy The value of imports from all sources increased at a rate of 146.2 percent per year while the value of imports from Canada increased at a rate of 44.8 percent per year. Canada was losing market share in a rapidly growing market; India was increasing imports from Canada at a slower rate than from the world. In 2010, Canada held 28.38 percent of this CAD 1.7 million market. 071310 Peas, Dried Shelled, Including Seed The value of imports from all sources increased at a rate of 20.1 percent per year while the value of imports from Canada increased at a rate of 22.1 percent per year. Canada was gaining market share in a fast growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 76.74 percent of this CAD 516.7 million market. 071320 Chickpeas (Garbanzos), Dried Shelled, Including Seed The value of imports from all sources increased at a rate of 2.1 percent per year while the value of imports from Canada increased at a rate of 22.7 percent per year. Canada was gaining market share in a slowly growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 2.79 percent of this CAD 89.0 million market. 071340 Lentils, Dried Shelled, Including Seed The value of imports from all sources increased at a rate of 64.7 percent per year while the value of imports from Canada increased at a rate of 85.5 percent per year. Canada was gaining market share in a fast growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 73.37 percent of this CAD 215.4 million market. 120750 Mustard Seeds, Whether or Not Broken The value of imports from all sources decreased at a rate of -26.4 percent per year while the value of imports from Canada decreased at a rate of -26.5 percent per year. Canada was slowly losing market share in a declining market; India was reducing imports from Canada at a slightly faster rate than from the world. In 2010, Canada held 100.00 percent of this CAD 222,000 market.

36

121190 Plants & Parts Etc for Medicaments Etc Nesoi The value of imports from all sources increased at a rate of 11.2 percent per year while the value of imports from Canada decreased at a rate of -6.8 percent per year. Canada was losing market share in a growing market; India was reducing imports from Canada while increasing imports from the world. In 2010, Canada held 0.07 percent of this CAD 35.6 million market. 130219 Vegetable Saps and Extracts, Nesoi The value of imports from all sources increased at a rate of 26.3 percent per year while the value of imports from Canada increased at a rate of 71.6 percent per year. Canada was gaining market share in a growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 0.38 percent of this CAD 14.4 million market. 170199 Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi The value of imports from all sources increased at a rate of 215.3 percent per year while the value of imports from Canada increased at a rate of 45.4 percent per year. Canada was losing market share in a rapidly growing market; India was increasing imports from Canada at a slower rate than from the world. In 2010, Canada held 0.04 percent of this CAD 232.1 million market. 170211 Lactose & Lactose Syrup Containing 99% or More Lactose by Weight The value of imports from all sources increased at a rate of 24.1 percent per year while the value of imports from Canada increased at a rate of 30.2 percent per year. Canada was gaining market share in a growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 9.46 percent of this CAD 24.8 million market. 210210 Yeasts, Active The value of imports from all sources increased at a rate of 16.0 percent per year while the value of imports from Canada decreased at a rate of -3.8 percent per year. Canada was losing market share in a growing market; India was reducing imports from Canada while increasing imports from the world. In 2010, Canada held 8.18 percent of this CAD 3.9 million market. 210610 Protein Concentrates & Textured Protein Substances The value of imports from all sources increased at a rate of 27.3 percent per year while the value of imports from Canada increased at a rate of 3.1 percent per year. Canada was losing market share in a growing market; India was increasing imports from Canada at a slower rate than from the world. In 2010, Canada held 3.43 percent of this CAD 11.3 million market. 210690 Food Preparations Nesoi The value of imports from all sources increased at a rate of 36.6 percent per year while the value of imports from Canada increased at a rate of 8.7 percent per year. Canada was losing market share in a growing market; India was increasing imports from Canada at a much slower rate than from the world. In 2010, Canada held 1.00 percent of this CAD 52.7 million market.

37

230990 Animal Feed Preparations Except Dog or Cat Food, Retail Packaged The value of imports from all sources increased at a rate of 26.0 percent per year while the value of imports from Canada increased at a rate of 38.6 percent per year. Canada was gaining market share in a growing market; India was increasing imports from Canada at a faster rate than from the world. In 2010, Canada held 0.26 percent of this CAD 149.7 million market.

Figure 5.

Percentage Changes in Selected Indian Agricultural, Agri-food & Sea food Impo rts - From Canada vs From the World. 2005 2010. Part 1.

Legend to Figure 5. HS CODE 071310 071320 071340 120750 121190 130219 170211

DESCRIPTION Peas, Dried Shelled, Including Seed. Chickpeas (Garbanzos), Dried Shelled, Including Seed. Lentils, Dried Shelled, Including Seed. Mustard Seed s, Whether or No t Broken. Plants & P arts Etc for M edica ments Etc N esoi. Vegetab le Sap s and Extracts, Ne soi. Lactose & Lactose Syrup Co ntaining 99% or M ore Lacto se by W eight. 210210 Yeasts, Active. 210610 Protein C oncentrates & Textured Pro tein Substances. 210690 Foo d Preparations Nesoi. 230990 Animal Feed Preparations Except Dog or Cat Food, Retail Packaged. 330129 Essential Oils, Neso i. ALL AGRIFOOD All Agricultural, Agri-food & Sea food P roducts.

38

330129 Essential Oils, Nesoi The value of imports from all sources increased at a rate of 26.1 percent per year while the value of imports from Canada decreased at a rate of -5.4 percent per year. Canada was losing market share in a growing market; India was reducing imports from Canada while increasing imports from the world. In 2010, Canada held 0.11 percent of this CAD 48.7 million market.

Figure 6.

Percentage Changes in Selected Indian Agricultura l, Agri-foo d & Seafo od Imp orts From Canada vs From the World. 2005 2010. Part 2.

Legend to Figure 6 HS CODE DESCRIPTION 051000 Ambergris, Casto reum Etc; G lands Etc for Pha rmac y. 170199 Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi.

VII. PRICE WORK-UPS A market is truly contestable only if the total of accumulated production costs, margins and other marketing costs of putting the product on the retail shelf are expected to compete favourably with similar products. In order to further identify possible contestable markets, Canadian exporters should gather specific data and information to complete a research-price-work-up. A 39

research-price-work-up could be developed before opening negotiations with a potential buyer and only to obtain an indication of the contestability of the market. It will be necessary to do a specific-price-work-up for the actual terms negotiated - usually FOB or CIF. A. The Research Price Work-up A research-price-work-up is developed by starting with the exporters production cost and adding margins and costs to calculate the: “ex works” (EXW)13 value; “free alongside” (FAS) value; “free on board” (FOB) value; “cost and freight” (CFR) value; “cost, insurance and freight” (CIF) value; “delivered duty paid” (DDP) value and; the minimum retail value of the product. The minimum retail value can then be compared to the actual retail price of a similar product in the foreign market. This comparison, along with other information, such as quality and consumer characteristics, can be of significant importance in determining if a market is contestable. B. Prices Tables 10 and 19 provide an indication of the price competition facing Canadian products in Indian food markets. It should be noted that different prices may reflect different qualities. A price for a Canadian product which is higher than competitors does not necessarily mean that the market is not contestable - further research needs to be done to compare quality and other characteristics important to consumers. In the absence of such research, ratios of CIF prices are used as indicators of contestability.

Table 10. Ratios of Indian CIF Import Prices from Canada to Indian CIF Import Prices from the World. Selected Products. 2010. Product

CIF Price Ratio (Canada / World)

030613 Shrimps and Prawns, Including in Shell, Frozen.

0.907

040410 W hey & Modified Whey Whether or Not Concentrated Containing A dded Sweeteners.

0.380

051000 Ambergris, Casto reum Etc; G lands Etc for Pha rmac y.

1.181

071310 Peas, Dried Shelled, Including Seed.

0.971

071320 Chickpeas (Garbanzos), Dried Shelled, Include Seed.

1.593

071340 Lentils, Dried Shelled, Including Seed.

1.012

080131 Cash ew N uts, Fresh or D ried, in S hell.

1.076

080211 Almo nds, Fresh or Dried, in Shell.

1.442

090940 Seeds of C araway.

1.500

120750 Mustard Seed s, Whether or No t Broken.

1.000

40

Product

CIF Price Ratio (Canada / World)

121190 Plants & P arts Etc for M edica ments Etc N esoi.

1.663

130219 Vegetab le Sap s and Extracts, Ne soi.

1.933

151419 Rapeseed / Colza Oil & Fractions, Low Erucic Acid, Nesoi.

1.000

151499 Rap eseed , Colza, M ustard Oil & Fractions T hereo f, Nesoi.

0.977

170199 Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi.

1.704

170211 Lactose & Lactose Syrup Co ntaining 99% or M ore Lacto se by W eight.

0.777

170490 Sugar Confection (Including White Chocolate), No Cocoa, Nesoi.

2.010

180100 Cocoa Beans, Whole or Broken, Raw or Roasted.

0.944

210210 Yeasts, Active.

2.551

210610 Protein C oncentrates & Textured Pro tein Substances.

1.390

210690 Foo d Preparations Nesoi.

3.586

220710 Ethyl Alcohol, Undenatured, Alcohol Not under 80% by Volume.

0.680

220830 W hiskies.

0.789

220870 Liqueurs and Co rdials.

0.837

230690 Oilca ke Etc. Derived from the Extraction of Vegetable Fats and O ils Nesoi.

4.821

230990 Animal Feed Preparations Except Dog or Cat Food, Retail Packaged.

2.047

330129 Essential Oils, Neso i.

0.682

410190 Butts / Bends / Bellies of B ovine / Eq uine Animals.

1.602

Source: Calculated from data supplied by the Indian Ministry of Commerce and Statistics Canada, via Global Trade A tlas. (Nov 20 11). Note: Ratios < 1 are po sitive indicators o f contestability.

41

VIII. IDENTIFICATION OF CONTESTABLE MARKETS Searching for market opportunities is not an exact science but some indication of the probability that Canadian companies will find an opportunity in a particular market can be gained from an index calculated from the number of positive indicators and the total number of indicators available. See Table 11. A positive research price work-up would be another strong indicator of a contestable market but requires additional data and information specific to the product being exported from Canada. A. Dairy Products As a result of a WTO decision and agreements between Canada & New Zealand and Canada & the USA (See Appendix 2), Canadian dairy products produced from milk purchased at the lower industrial price are considered to be subsidized when exported. The export of these products are limited to: 3,500 t of butter; 9,076 t of cheese; 44,953 t of skim milk powder and; 30,282 t of other milk products. Although not normally economic, there is no limit to the export of dairy products produced from the domestic full-priced milk. The quota limits apply to Canadian exports to all countries not just the USA and New Zealand. A company wishing to export products produced from the lower priced industrial milk must obtain a permit to export within the quota limits from: The Canadian Dairy Commission (CDC) Chief Commercial Operations Marketing Operations Building 55, CEF Floor Upper, Room 302 960 Carling Ave Ottawa, ON K1A 0Z2 Ph: (613) 792-2010 FAX: (613) 792-2009 If the company is using domestic full-priced milk, no permit from the CDC is required. In any case a company wanting to export dairy products must be registered with the Canadian Food Inspection Agency (CFIA) - see website: http://www.inspection.gc.ca/. B. Opportunities During the period January 1993 to December 1994 a trend line fitted to the value of the INR increased at a rate of 4.57% per year. The increasing value of the INR was a positive factor facilitating the search for contestable markets in India. In contrast, between January 1995 and February 2012 the value of the INR fell at a rate of -3.99% per year. During this time, the declining value of the INR was a negative factor making the identification of contestable markets 42

increasingly difficult.

Table 11.

Summary of Indicators of Contestability of Selected Markets. India.

Product

Indicators of Contestability CIF Price Change a

CIF Price Ratio b

(%/year)

(Canada / World)

Ch ang e in Consumption Per Person c (%/Year)

Change in Value of Impor ts a (%/ year)

Position in Grid Ana lysis d

Index of Indicators (No. of +) / (no. available)

PRODUCTS IMPORTED FROM CANADA 051000

071310

071320

071340

120750

121190

130219

170199

170211

210210 210610

Amb ergris, Castoreum Etc; Glands Etc for Pha rmac y. Peas, Dried Shelled, Including Seed. Chickpeas (Garbanzos), Dried Shelled, Include Seed. Lentils, Dried Shelled, Including Seed. Mustard Seed s, Whether or Not Broken. Plants & P arts Etc for Medica ments Etc Nesoi. Vegetable Saps and E xtracts, Nesoi. Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi. Lactose & Lactose Syrup Containing 99% or M ore Lac tose by W eight. Yeasts, Active. Pro tein

5.7

1.181

-1.30

146.20 2b

0.40

6.7

0.971

8.50

20.10

2a

1.00

0.4

1.593

-2.00

2.10

2a

0.60

15.2

1.012

-2.00

64.70

2a

0.60

27.1

1.000

0.50

-26.40

3b

0.40

-6.4

1.663

-0.70

11.20

4

0.20

0.0

1.933

-0.70

26.30

2a

0.40

5.2

1.704

-0.40

215.30

2b

0.40

3.4

0.777

-1.60

24.10

2a

0.80

11.2 -8.8

2.551 1.390

n/a n/a

16.00 27.30

4 2b

0.50 0.25

43

Product

210690

230990

330129

Conc entrates & Textured Pro tein Substances. Food Preparations Nesoi. Animal Feed Preparations Except Dog or Cat Food , Retail Packaged. Essential Oils, Nesoi.

Indicators of Contestability Ch ang e in Consumption Per Person c

CIF Price Ratio b

(%/year)

(Canada / World)

1.6

3.586

n/a

36.60

2b

0.50

11.4

2.047

n/a

26.00

2a

0.75

19.3

0.682

-1.10

26.10

4

0.60

(%/Year)

Change in Value of Impor ts a (%/ year)

Position in Grid Ana lysis d

Index of Indicators

CIF Price Change a

(No. of +) / (no. available)

PRODUCTS NOT IMPORTED FROM CANADA 030269

040210

040229

040590

050100

071333

Fish, N esoi, with Bones, Fresh or Chilled. Milk & Cream, Concentrated, Sweetened, Powde r, Granules / Other Solids, Not over 1.5% Fat. Milk & Cream, Concentrated, Sweetened, Powde r, Granules / Other Solids, over 1.5% Fat. Fats and O ils Derived from Milk, Nesoi. Human H air, Unworked and W aste of Human Hair. Kidne y Beans & W hite Pea Beans, Dried Shelled, Including Seed.

16.1

1.10

36.40 1.00

4.8

1.10

150.20

1.00

0.1

1.10

112.40

1.00

10.0

5.50

78.80

1.00

2.8

n/a

71.40

0.67

7.4

1.80

27.30

1.00

44

Product

071339

071390

080212

080290

080620

080820 090240

091010 100110 100190

120791

120799

120991 130190

Beans N esoi, Dried Shelled, Including Seed. Leguminous Vegetables Nesoi, Dried Shell, Including Seed. Almon ds, Fresh or Dried, Shelled. Nuts Nesoi, Fresh or Dried, Shelled or Not. Grapes, Dried (Including Raisins). Pears and Quinces, Fresh. Black Tea Fermented & Othe r Partly Fermented Tea Nesoi. Ginger. Durum W heat. W heat (Other than Durum W heat), and Meslin. Pop py Seed s, Whether or Not Broken. Oil Seed s & Oleaginous Fruits Whether or Not B roken, Nesoi. Vegetable Seeds for Sowing. Natural G ums, Gum Resins, Resins and

Indicators of Contestability CIF Price Change a

CIF Price Ratio b

(%/year)

(Canada / World)

Ch ang e in Consumption Per Person c (%/Year)

Change in Value of Impor ts a (%/ year)

Position in Grid Ana lysis d

Index of Indicators (No. of +) / (no. available)

12.5

1.80

4.30

1.00

15.1

1.80

19.30

1.00

-4.6

1.40

13.20

0.67

14.1

1.40

14.20

1.00

-1.7

5.00

3.80

0.67

7.1

0.10

44.50

1.00

6.6

0.80

16.80

1.00

1.2 5.1 4.1

1.30 0.70 0.70

9.10 -35.80 -50.30

1.00 0.67 0.67

28.3

1.30

40.00

1.00

7.7

-1.10

21.50

0.67

-6.4

-0.70

14.70

0.33

16.6

n/a

22.20

1.00

45

Product

150710

151211

180310 180500 220290

220720

500200 510119

510121

510129

Balsams N esoi. Soyb ean O il & Fractions, Crude, Whether or Not Degummed. Sunflower-seed or Sa fflower O il, Crude , Fractions, Etc. Cocoa Paste, Not Defatted. Cocoa P owder, Not Sweetened. No nalco holic Beverages, Nesoi. Ethyl A lcoho l & Othe r Spirits Denatured Any Strength. Raw Silk (Not Thrown). Wool, Not Carded or Combe d, Greasy, Nesoi. W ool Not Cared / Combed Degreased N Carbonized, Shorn. Wool, Not Carded/combed Degreased Not Carbonized Nesoi.

Indicators of Contestability CIF Price Change a

CIF Price Ratio b

(%/year)

(Canada / World)

Ch ang e in Consumption Per Person c (%/Year)

Change in Value of Impor ts a (%/ year)

Position in Grid Ana lysis d

Index of Indicators (No. of +) / (no. available)

7.1

6.20

-0.50

0.67

8.5

-2.00

100.50

0.67

20.3

11.30

126.90

1.00

17.6

11.30

31.50

1.00

0.3

n/a

9.90

1.00

2.6

2.40

7.80

1.00

4.8

n/a

1.20

1.00

4.7

n/a

9.50

1.00

3.2

n/a

13.30

1.00

-0.2

n/a

-10.40

0.00

46

Product

Indicators of Contestability CIF Price Change a

CIF Price Ratio b

(%/year)

(Canada / World)

Ch ang e in Consumption Per Person c (%/Year)

Change in Value of Impor ts a (%/ year)

Position in Grid Ana lysis d

Index of Indicators (No. of +) / (no. available)

Notes: a Values > 0 .00 are po sitive indicators o f contestability. Calculated from the CIF values o f Indian impo rts supplied by the World Trade Atlas and sourced from the Indian Ministry of Commerce, 2005 - 2010. b

Values < 1 .000 are positive ind icators of contestab ility.

c

Values > 0.00 are positive indicators of contestability. Calculated from FAO food balance sheets 1997 - 2007 which do not use the HS codes. The approximate relationships are:

Beans: Beverages, Alcoholic: Butter, Ghee: Cocoa B eans: Fish, Seafood: Fruits, Other: Grap es: Milk - Excluding Butter: Offals: Oilcrops, Other: Peas: Pulses, Other: Rap e and Mustard Oil: Soya bean Oil: Spices, Other: Sugar, Refined Equiv: Sunflowerseed O il: Sweeteners, Other: Tea: Tree nuts: Vegetables, Other: W heat:

d

071339, 220720 040590 180310, 030269 080820 080620 040210, 051000 330129, 071310 071320, 120750 150710 091010, 170199 151211 170211 090240 080212, 121190, 100110,

071333

180500

040229 120799 071340, 071390

120791

080290 130219, 120991 100190

The meanings o f the positions in the “Grid A nalysis” are as follows: 1: Imports from Canad a increasing; C anad a gaining market share in a co ntracting market. 2a: Imports from Canada increasing; Canada gaining market share in an expanding market - a positive indicator. 2b: Imports from Canad a increasing; C anad a losing market share in an expanding m arket. 3a: Imports from Canad a dec reasing; Cana da ga ining market share in a contra cting market. 3b: Imports from Canad a dec reasing; Cana da losing ma rket share in a co ntracting market. 4: Imports from Canad a dec reasing; Cana da losing ma rket share in an e xpanding market.

47

C. Product Groups with an Index of Indicators of 1.00 According to this analysis, Canadian exporters have the highest probability of finding opportunities in the following Indian food markets. These discussions refer to the period 2005 to 2010 (1997 to 2007 for consumption data) unless otherwise specified. Unless otherwise indicated the recommendation for these products are: Increase Canada’s capacity to produce and export these products, taking advantage of economies of scale and modern technology. Conduct market research into the preferences of Indian importers distributors and consumers. Improve the image of Canadian products in India by branding. 030269 Fish, Nesoi, with Bones, Fresh or Chilled • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 040210 • • •

Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, Not over 1.5% Fat The price was increasing; Consumption per person was increasing; The value of imports was increasing. Recommendation: Market research to examine the possibilities of exporting dairy products produced from full priced milk as food prices in general increase over the next few decades.

040229 • • •

Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, over 1.5% Fat The price was increasing; Consumption per person was increasing; The value of imports was increasing. Recommendation: Market research to examine the possibilities of exporting dairy products produced from full priced milk as food prices in general increase over the next few decades.

040590 Fats and Oils Derived from Milk, Nesoi • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. Recommendation: Market research to examine the possibilities of exporting dairy products produced from full priced milk as food prices in general increase over the next few decades.

48

050100 Human Hair, Unworked and Waste of Human Hair • The price was increasing; • The value of imports was increasing. 071310 Peas, Dried Shelled, Including Seed • The price was increasing; • The Canada / world price ratio was favourable; • Consumption per person was increasing; • The value of imports was increasing; • Canada was gaining market share in an expanding market. 071333 Kidney Beans & White Pea Beans, Dried Shelled, Including Seed • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 071339 Beans Nesoi, Dried Shelled, Including Seed • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 071390 Leguminous Vegetables Nesoi, Dried Shelled, Including Seed • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 080290 Nuts Nesoi, Fresh or Dried, Shelled or Not • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 080820 Pears and Quinces, Fresh • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 090240 Black Tea Fermented & Other Partly Fermented Tea Nesoi • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing.

49

091010 Ginger • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 120791 Poppy Seeds, Whether or Not Broken • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 130190 Natural Gums, Gum Resins, Resins and Balsams Nesoi • The price was increasing; • The value of imports was increasing. 180310 Cocoa Paste, Not Defatted • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 180500 Cocoa Powder, Not Sweetened • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 220290 Nonalcoholic Beverages, Nesoi • The price was increasing; • The value of imports was increasing. 220720 Ethyl Alcohol & Other Spirits Denatured, Any Strength • The price was increasing; • Consumption per person was increasing; • The value of imports was increasing. 500200 Raw Silk (Not Thrown) • The price was increasing; • The value of imports was increasing. 510119 Wool, Not Carded or Combed, Greasy, Nesoi • The price was increasing; • The value of imports was increasing. 510121 Wool Not Carded / Combed Degreased Not Carbonized, Shorn • The price was increasing; • The value of imports was increasing. 50

D. Product Groups with an Index of Indicators from 0.75 to 0.99 Canadian exporters have a high probability of finding opportunities in the following markets in India although based on the analysis, the probability may be lower than for the product groups above. Unless otherwise indicated, the recommendations for these product groups are: Increase Canada’s capacity to produce and export these products taking advantage of economies of scale and modern technology. Conduct market research into the preferences of Indian importers, distributors and consumers. Improve the image of Canadian products in India by branding. 170211 Lactose & Lactose Syrup Containing 99% or More Lactose by Weight • The price was increasing; • The Canada / world price ratio was favourable; • The value of imports was increasing; • Canada was increasing market share in an expanding market; • Consumption per person was decreasing. 230990 Animal Feed Preparations Except Dog or Cat Food, Retail Packaged • The price was increasing; • The value of imports was increasing; • Canada was increasing market share in an expanding market; • The Canada / world price ratio was unfavourable.

E. Product Groups with an Index of Indicators from 0.50 to 0.74 Canadian exporters have a high probability of finding opportunities in the following markets in India although based on the analysis, the probability may be lower than for the product groups above. Unless otherwise indicated, the recommendations for these product groups are: Conduct market research into the preferences of Indian importers, distributors and consumers. Increase Canada’s capacity to produce and export these products as appropriate. Improve the image of Canadian products in India by branding. 071320 Chickpeas (Garbanzos), Dried Shelled, Include Seed • The price was increasing slowly; • The value of imports was increasing; • Canada was increasing market share in an expanding market; • The Canada / world price ratio was unfavourable; • Consumption per person was decreasing.

51

071340 Lentils, Dried Shelled, Including Seed • The price was increasing; • The value of imports was increasing; • Canada was increasing market share in an expanding market; • The Canada / world price ratio was unfavourable; • Consumption per person was decreasing. 080212 Almonds, Fresh or Dried, Shelled • Consumption per person was increasing; • The value of imports was increasing; • The price was decreasing. 080620 Grapes, Dried (Including Raisins) • Consumption per person was increasing; • The value of imports was increasing; • The price was decreasing. 100110 Durum Wheat • The price was increasing; • Consumption per person was increasing slowly; • The total value of imports was decreasing. 100190 Wheat (Other than Durum Wheat), and Meslin • The price was increasing; • Consumption per person was increasing slowly; • The total value of imports was decreasing. 120799 Oil Seeds & Oleaginous Fruits Whether / Not Broken, Nesoi • The price was increasing; • The total value of imports was increasing; • Consumption per person was decreasing. 150710 Soybean Oil & Fractions, Crude, Whether / Not Degummed • The price was increasing; • Consumption per person was increasing slowly; • The total value of imports was decreasing. 151211 Sunflower-seed or Safflower Oil, Crude, Fractions Thereof, Etc • The price was increasing; • The total value of imports was increasing rapidly; • Consumption per person was decreasing.

52

210210 Yeasts, Active • The price was increasing; • The total value of imports was increasing; • The Canada / world price ratio was unfavourable; • Imports from Canada were decreasing and Canada was losing market share in an expanding market. 210690 Food Preparations Nesoi • The price was increasing; • The total value of imports was increasing; • The Canada / world price ratio was unfavourable; • Imports from Canada were increasing slower than from the world and Canada was losing market share. 330129 Essential Oils, Nesoi • The price was increasing; • The Canada / world price ratio was favourable; • The total value of imports was increasing; • Consumption per person was decreasing; • Imports from Canada were decreasing and Canada was losing market share.

F. Product Groups with an Index of Indicators from 0.25 to 0.49 Canadian exporters have a medium probability of finding opportunities in the following Indian markets. Based on the analysis in this paper, the probability will be lower than for the product groups above. Unless otherwise indicated the recommendations for these product groups are: Conduct market research into the preferences of Indian importers, distributors and consumers. Increase Canada’s capacity to produce and export these products as appropriate. Improve the image of Canadian products in India by branding. 051000 Ambergris, Castoreum Etc; Glands Etc for Pharmacy • The price was increasing; • The total value of imports was increasing; • The Canada / world price ratio was unfavourable; • Consumption per person was decreasing; • Imports from Canada were decreasing and Canada was losing market share. 120750 Mustard Seeds, Whether or Not Broken • The price was increasing; • Consumption per person was increasing slowly; • The Canada / world price ratio was 1.0; • The total value of imports was decreasing; 53

•

Imports from Canada were decreasing and Canada was losing market share in a declining market.

120991 Vegetable Seeds for Sowing • The total value of imports was increasing; • The price was decreasing; • Consumption per person was decreasing. 130219 Vegetable Saps and Extracts, Nesoi • The total value of imports was increasing; • Canada was increasing market share in an expanding market; • The price showed no change over the period 2005 to 2010; • The Canada / world price ratio was unfavourable; • Consumption per person was decreasing slowly. 170199 Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi • The price was increasing; • The total value of imports was increasing; • The Canada / world price ratio was unfavourable; • Consumption per person was decreasing slowly; • Imports from Canada were increasing slowly but Canada was losing market share in an expanding market. 210610 Protein Concentrates & Textured Protein Substances • The total value of imports was increasing; • The price was decreasing; • The Canada / world price ratio was unfavourable; • Imports from Canada were increasing slowly and Canada was losing market share in an expanding market. G. Product Groups with an Index of Indicators from 0.00 to 0.24 Canadian exporters have a medium to low probability of finding opportunities in the following Indian markets. Based on the analysis in this paper, the probability will be lower than for the above product groups. 121190 Plants & Parts Etc for Medicaments Etc Nesoi • The total value of imports was increasing; • The price was decreasing; • The Canada / world price ratio was unfavourable; • Consumption was decreasing; • Imports from Canada were decreasing and Canada was losing market share in an expanding market.

54

510129 Wool, Not Carded /Combed Degreased Not Carbonized Nesoi • The price was decreasing; • The total value of imports was decreasing.

IX.

CONCLUSIONS Between 2005 and 2010, the value of Indian imports of agricultural, agri-food & seafood products from all sources was increasing at a rate of 18.6 percent per year while the value of the same imports from Canada was increasing at a rate of 27.3 percent per year. Canada was increasing market share in a rapidly expanding market. With the economic development of the country and the large population, India is increasingly important as a destination for Canadian agri-food and seafood products. Based on the analysis in this paper, Canadian food exporters might find new or continuing opportunities in the following Indian markets: • • • • • • • • • • • • • • • • • • •

Fish, Nesoi, With Bones, Fresh Or Chilled; Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, Not over 1.5% Fat; Milk & Cream, Concentrated, Sweetened, Powder, Granules / Other Solids, Over 1.5% Fat; Fats And Oils Derived From Milk, Nesoi; Peas, Dried Shelled, Including Seed; Kidney Beans & White Pea Beans, Dried Shelled, Including Seed; Beans Nesoi, Dried Shelled, Including Seed; Leguminous Vegetables Nesoi, Dried Shell, Including Seed; Nuts Nesoi, Fresh Or Dried, Shelled Or Not; Pears And Quinces, Fresh; Ginger; Poppy Seeds, Whether Or Not Broken; Natural Gums, Gum Resins, Resins And Balsams Nesoi; Cocoa Paste, Not Defatted; Cocoa Powder, Not Sweetened; Nonalcoholic Beverages, Nesoi; Ethyl Alcohol & Other Spirits Denatured Any Strength; Wool, Not Carded Or Combed, Greasy, Nesoi; Wool Not Carded / Combed Degreased Not Carbonized, Shorn.

Canadian companies considering entering the Indian food markets should act on the following points before making major investments and other commitments: Marketing: • marketing and branding strategies should be suitable for the Indian market. Branding style and language should be familiar to the markets of India; 55

•

market acceptance of a product should be determined early; by further identifying appropriate local product flavours (taste tests), packaging sizes and consumption patterns.

Business: • potential local wholesale and/or retail partners in India should be identified; •

options for transportation/distribution and warehousing should be understood;

•

establishing a corporate presence in India should be considered. This could include one or more of: a representative office, formal joint venture or other forms as permitted under Indian law;

•

understand local tax, invoicing and payment schedules - includes local payments and the identification of legal means of repatriating money;

•

understand customs clearance requirements, including export/import fees, product certification or designation requirements.

• For more information on doing business in India readers may visit the Trade Commissioner Service web site at www.infoexport.gc.ca.

X.

CONTACTS IN INDIA Canadian companies interested in exporting to India may contact the following for current information: NEW DELHI Canadian High Commission, 7/8 Shantipath, Chanakyapuri, New Delhi, 110 021, India. Tel: +91-11-4178-2000. Fax: +91-11-4178-2020. Email: [email protected]

HYDERABAD Canadian Trade Office, ITC Hotel, The Kakatiya - 6-3-1187, Begumpet, Hyderabad, 500 034, India. Tel: +91-40-2340-4518/19. Fax: +91-40 2340-4523. E-Mail:[email protected]

56

MUMBAI Consulate General of Canada, Fort House, 6th Floor, 221, Dr. D.N. Road, Fort, Mumbai 400 001, India. Tel: +91-22-6749-4444. Fax: +91-22-6749-4454. E-mail: [email protected]

KOLKATA Canadian Trade Office, Hyatt Regency Kolkata - JA-1 Sector III, Salt Lake City, Kolkata, 700 098, India. Tel: +91-033-2335-4010. Fax: +91-033-2335-4011. Email: [email protected]

CHANDIGARH Consulate General of Canada, SCO 54-56, Sector 17-A, Chandigarh, 160 017, India. Tel: +91-172-505-0300. Fax: +91-172-505-0320. Email: [email protected]

BANGALORE Canadian Trade Office, 103 Prestige Meridian 1, 29 M.G. Road, Bangalore, Karnataka, 560001, India. Tel: +91-80-2558-1116, 2559-9418. Fax: +91-80-2559-9424. Email: [email protected]

CHENNAI Consulate of Canada, 18 (Old 24), 3rd floor YAFA Tower, Khader Nawaz Khan Road, Nungambakkam, Chennai 600 006, India. Tel: +91-44-2833-0888. Fax: +91-44-4215-9393. E-mail: [email protected]

AHMEDABAD Canadian Trade Office, Courtyard Marriott Ahmedabad, Ramdevnagar Cross Roads, Satellite, Nr. S.G. Highway, Ahmedabad - 380015, Tel: +91-79-6618-5012. Fax: +91-79-6618-5013. Email: [email protected]

57

XI.

CONTACTS IN CANADA Agriculture and Agri-food Canada has seven offices across Canada to assist Canadian food companies to export. Food companies interested in exporting should contact the nearest office for information and advice. ALBERTA AND TERRITORIES Alberta & Territories Regional Office, Agriculture and Agri-Food Canada, 9700 Jasper Avenue, Suite 720, Edmonton, AB, CANADA, T5J 4G5. Tel: 780-495-4141. Fax: 780-495-3324.

MANITOBA Manitoba Regional Office, Agriculture and Agri-Food Canada, 303 Main Street, Room 402, Winnipeg, MB, CANADA, R3C 3G7. Tel: 204-983-3032. Fax: 204-983-4583.

ATLANTIC Atlantic Regional Office, Agriculture and Agri-Food Canada, PO Box 248, 1791 Barrington Street, Floor 4th, Halifax, NS, CANADA, B3J 2N7. Tel: 902-426-6151. Fax: 902-426-3439.

ONTARIO Ontario Regional Office, Agriculture and Agri-Food Canada, 174 Stone Road West, Guelph, ON, CANADA, N1G 4S9. Tel: 519-837-9400. Fax: 519-837-9782. QUEBEC Quebec Regional Office, Agriculture and Agri-Food Canada, 2001, University (Room 671-M), Montréal, QC, CANADA, H3A 3N2. Tel: 514-283-8888. Fax: 514-496-3966.

BRITISH COLUMBIA British Columbia Regional Office, Agriculture and Agri-Food Canada, Suite 420, 4321 Still Creek Drive, Burnaby, BC, CANADA, V5C 6S7. Tel: 604-666-6344. Fax: 604-666-7235. Email: [email protected]

SASKATCHEWAN Saskatchewan Regional Office, 401 - 1800 Hamilton Street, Regina, SK, CANADA, S4P 4K7. Tel: 306-780-5545. Fax: 306-780-7360. Email: [email protected] 58

APPENDIX 1

Figure 7. Political Map of India. Source: University of Texas Library On Line. http://www.lib.utexas.edu/maps/middle_east_and_asia/india_pol01.jpg (Accessed Feb 20 12).

59

Table 12. Area, Population and NSDP of States and Union Territories of India. 2011. State or Union Territory

Estimated a Area

Estimated Population

(Km2 )

(People)

Estimated Population Density (People/Km2 )

Estimated b NSDP

Estimated NSDP/ Person

(CAD)

(CAD/Person)

EAST AND NORTHEAST INDIA 1

Andaman & Nicobar Islands, Union Territory.

8,249

379,944

46

918,680,730

2,418

2

Arunachal Pradesh.

83,743

1,382,611

17

1,543,460,130

1,116

3

Assam.

78,438

31,169,272

397

22,147,367,180

711

4

Bihar

94,163

103,804,637

1,102

45,280,143,230

436

5

Chhattisgarh.

135,191

25,540,196

189

27,566,372,180

1,079

6

Jharkhand.

79,714

32,966,238

414

22,673,966,960

688

7

Manipur.

22,327

2,721,756

122

1,954,666,980

718

8

Meghalaya.

22,429

2,964,007

132

3,112,208,950

1,050

9

Mizoram.

21,081

1,091,014

52

1,313,099,290

1,204

10

Nagaland.

16,579

1,980,602

119

2,323,371,830

1,173

11

Orissa.

155,707

41,947,358

269

39,602,513,560

944

12

Sikkim.

7,096

607,688

86

1,201,106,520

1,977

13

Tripura.

10,486

3,671,032

350

3,469,863,280

945

14

West Bengal.

88,752

91,347,736

1,029

94,278,786,440

1,032

SUBTOTAL / AVERAGE

823,955

341,574,091

415

267,385,607,260

783

NORTH INDIA

15

Chandigarh, Union Territory.

114

1,054,686

9,252

4,399,807,040

4,172

16

Delhi, Union Territory and National Capital Territory.

1,794

16,753,235

9,340

54,999,288,080

3,283

17

Haryana.

44,212

25,353,081

573

54,783,590,430

2,161

18

Himachal Pradesh.

55,673

6,856,509

123

11,141,049,260

1,625

19

Jammu and Kashmir.

222,236

12,548,926

56

10,138,639,590

808

60

State or Union Territory

Estimated a Area

Estimated Population

(Km2 )

(People)

Estimated Population Density (People/Km2 )

Estimated b NSDP

Estimated NSDP/ Person

(CAD)

(CAD/Person)

50,362

27,704,236

550

47,035,263,320

1,698

Rajasthan.

342,239

68,621,012

201

64,466,608,580

939

22

Uttar Pradesh.

240,928

199,581,477

828

125,055,122,170

627

23

Uttarakhand.

53,483

10,116,752

189

16,486,525,800

1,630

1,011,041

368,589,914

365

388,505,894,270

1,054

20

Punjab.

21

SUBTOTAL SOUTH INDIA

24

Andhra Pradesh.

275,045

84,665,533

308

120,628,326,360

1,425

25

Karnataka.

191,791

61,130,704

319

84,768,751,430

1,387

26

Kerala.

38,863

33,387,677

859

56,991,569,330

1,707

27

Lakshedweep, Union Territory.

32

64,429

2,013

93,929,420

1,458

28

Punducherry, Union Territory.

479

1,244,464

2,598

2,747,541,790

2,208

29

Tamil Nadu.

130,058

72,138,958

555

116,299,710,170

1,612

SUBTOTAL

636,268

252,631,765

397

381,529,828,500

1,510

WEST INDIA

30

Dadra and Nagar Haveli, Union Territory.

491

342,853

698

421,619,840

1,230

31

Daman and Diu, Union Territory.

112

242,911

2,169

259,262,200

1,067

32

Goa.

3,702

1,457,723

394

6,348,311,230

4,355

33

Gujarat.

196,024

60,383,628

308

102,380,092,660

1,695

34

Madhya Pradesh.

308,245

72,597,565

236

51,053,189,890

703

35

Maharashtra.

307,713

112,372,972

365

218,804,758,710

1,947

SUBTOTAL

816,287

247,397,652

303

379,267,234,530

1,533

3,287,551

1,210,193,422

368

1,416,688,564,560

1,171

TOTAL Sources:

Notes:

a http://en.wikipedia.org/wiki/List_of_states_and_union_territories_of_India_by_population (Accessed Nov 2011). b http://unidow.com/india%20home%20eng/statewise_gdp.html (Accessed Jan 2012). Pacific Exchange Rate Service. INR 1.00 = CAD 0.021251. NSDP = Net State Domestic Product.

61

Table 13. Population and GDP. India. 1992 - 2012. Year

Population

a

Population b

GDP b (CA D C urrent)

GDP / Person (CAD)

1992

870,113,000

1993

886,744,000

1994

903,579,000

1995

920,585,000

932,180,000

488,984,735,693

525

1996

937,725,000

948,758,853

529,505,304,314

558

1997

954,926,000

965,428,183

568,938,758,252

589

1998

972,113,000

982,182,462

617,496,969,982

629

1999

989,250,000

999,016,010

669,248,839,251

670

2000

1,006,300,000

1,015,923,000

683,532,147,463

673

2001

1,023,295,000

1,032,473,426

740,086,339,756

717

2002

1,040,285,000

1,048,640,721

796,416,716,524

759

2003

1,057,251,000

1,064,398,612

839,771,973,104

789

2004

1,074,159,000

1,079,721,194

938,874,431,316

870

2005

1,090,973,000

1,094,583,000

1,010,293,281,861

923

2006

1,107,624,000

1,109,811,147

1,079,089,964,535

972

2007

1,124,135,000

1,124,786,997

1,334,200,139,248

1,186

2008

1,140,566,000

1,139,964,932

1,296,909,027,045

1,138

2009

1,156,898,000

1,155,347,678

1,571,713,837,497

1,360

2010

1,173,108,000

1,170,938,000

1,778,924,429,254

1,519

2011

1,189,173,000

2012

1,205,074,000

Source s: a http://www .census.gov/p opulation/internation al/data/idb/info rmatio nGate way.php.(Accessed Jan 2012). b http://databank.worldbank.org/ddp/editReport?REQUE ST_SO URCE =sear ch&CNO=2&country=IND&series=&period=. (Accessed Jan 2012). Pacific Exchange Rate Service. Note: GD P data originally in INRs.

62

Table 14. GDP by Origin, 2011. India. Origin

Value (Million CAD)

Percent

Agriculture, Hunting, and Forestry.

322,936.7

17.54

Financial Intermediation, Real Estate, Renting & Business Activities.

312,285.3

16.96

Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles & Personal & Household Goods.

279,834.3

15.20

Manufacturing.

265,241.9

14.41

Construction.

147,197.6

8.00

Education, Health, Social Work and Other Community, Social, Personal Service Activities.

137,941.7

7.49

Transport, Storage & Communications.

132,653.3

7.21

Public Administration & Defence; Compulsory Social Security.

117,734.6

6.40

Mining and Quarrying.

48,501.3

2.63

Electricity, Gas and Water Supply.

27,334.9

1.48

Hotels and Restaurants.

25,078.6

1.36

Fishing.

20,433.6

1.11

3,766.7

0.20

1,840,940.4

100.00

Activities of Households. TOTAL

Source: Calculated from Euromonitor International (Feb 201 2). Pacific Exchange Rate Service. (INR 1.00 = C AD 0 .021251 ). Note: The original GD P values we re measure d in INR s at current prices.

63

Table 15. Percent of Employment by Sector. India. Sectors Employment in Agriculture, Hunting, Forestry and Fishing. Employment in Trade, Motor Vehicles and Personal and Household Goods Repair, Hotels and Restaurants. Employment in Manufacturing. Employment in Construction. Employment in Community, Education, Health, Social, Personal Services, Public Admin and Defence. Employment in Transport, Storage and Communications. Employment in Finance, Insurance, Real Estate and Business Services. Employment in Undefined Sectors. Employment in Mining and Quarrying. Employment in Electricity, Gas and Water Supply. Employment Rate.

2006 2007 (%) (%) 56.5 56.5

2008 (%) 56.0

2009 (%) 54.8

2010 (%) 53.2

2011 (%) 52.8

9.6

9.5

9.6

10.0

10.8

10.9

13.2 4.9 9.5

13.1 4.8 9.7

12.8 5.5 9.4

12.0 7.2 8.6

11.0 9.6 7.4

10.7 10.2 7.1

3.3

3.3

3.4

3.8

4.3

4.4

1.7

1.9

2.0

2.1

2.1

2.1

0.6 0.4

0.7 0.4

0.7 0.5

0.7 0.5

0.7 0.6

0.7 0.6

0.2

0.2

0.2

0.2

0.3

0.3

55.6

53.4

52.7

52.9

52.7

52.9

Source: Euromo nitor International (Feb 2012). Note: Employment rate = percent of population of working age 15 to 64. Percentages by sector are percentage of employed population.

64

Table 16.

Distribution of Households by Disposable Income. India.

Annual Disp osable Income (Int’l $ at PPP)

2005 (‘000 Hlds.)

500 - 999

2006 (‘000 Hlds.)

2007 (‘000 Hlds.)

2008 (‘000 Hlds.)

2009 (‘000 Hlds.)

2010 (‘000 Hlds.)

2011 (‘000 Hlds.)

1,40 8.7

1,18 2.2

1,06 2.9

889 .8

829 .8

735 .8

624 .2

1,000 - 2,499

11,3 71.0

9,55 8.2

8,52 2.9

7,09 3.7

6,49 4.1

5,80 2.3

4,95 8.1

2,500 - 9,999

118 ,000 .4

110 ,302 .0

104 ,239 .4

94,3 12.3

88,5 35.3

83,2 81.6

75,6 40.2

73,8 91.9

87,1 10.8

97,7 86.9

112 ,603 .4

122 ,378 .8

131 ,718 .2

143 ,420 .1

2,18 5.8

2,52 7.0

2,83 8.1

3,31 3.5

3,67 5.6

4,06 2.6

4,61 6.7

206 ,857 .8

210 ,680 .2

214 ,450 .2

218 ,212 .7

221 ,913 .6

225 ,600 .5

229 ,259 .3

10,000 - 74,999 >=75,000

Total.

Source: Adapted from E uromonitor International. (Accessed Feb 201 2).

Table 17.

Value and Volume of Retail Sales of Packaged Food. India. 2005 and 2010.

Sector Confectionery.

Bakery.

Ice Cream.

Item

2006

2007

2008

2009

2010

Sales (Billion INR).

33.2

37.3

43.3

51.2

58.9

68.4

Volume (‘000 Tonnes).

150.1

164.6

185.4

208.2

229.8

254.4

Sales (Billion INR).

113.1

121.1

132.4

150.3

165.4

181.2

Volume (‘000 Tonnes).

2,811.3

2,942.4

3,132.2

3,344.3

3,513.7

3,673.4

Sales (Billion INR).

9.3

11.3

13.9

17.0

20.4

24.4

68.0

81.3

98.8

118.2

136.6

157.7

Sales (Billion INR).

154.9

181.7

224.4

265.3

312.3

369.5

Volume (‘000 Tonnes).

n/a

n/a

n/a

n/a

n/a

n/a

Volume (Million Litres).

Dairy Products.

2005

65

Sector Sweet and Savoury Snacks.

Meal Replacement Products.

Ready Meals.

Meal Solutions.

Soup.

Pasta.

Noodles.

Canned/ Preserved.

Frozen Processed.

Dried Processed.

Item

2005

2006

2007

2008

2009

2010

Sales (Billion INR).

18.0

20.2

23.8

27.8

31.6

36.3

Volume (‘000 Tonnes).

102.2

112.0

128.3

146.2

163.1

183.6

Sales (Billion INR).

5.3

5.9

6.5

7.4

8.6

9.9

Volume (‘000 Tonnes).

17.2

18.4

20.0

22.2

24.6

27.1

Sales (Billion INR).

0.4

0.4

0.5

0.6

0.7

0.8

Volume (‘000 Tonnes).

2.1

2.4

2.8

3.2

3.6

4.1

Sales (Billion INR).

26.7

29.2

32.4

36.1

40.6

46.3

Volume (‘000 Tonnes).

174.8

190.1

208.3

227.9

249.7

277.2

Sales (Billion INR).

0.6

0.6

0.8

1.0

1.2

1.5

Volume (‘000 Tonnes).

1.7

1.8

2.1

2.4

2.7

3.3

Sales (Billion INR).

0.1

0.1

0.1

0.1

0.2

0.2

Volume (‘000 Tonnes).

0.9

1.0

1.1

1.3

1.5

1.7

Sales (Billion INR).

9.0

10.7

13.0

15.6

18.5

21.9

Volume (‘000 Tonnes).

111.9

128.1

150.5

172.8

197.0

224.3

Sales (Billion INR).

2.0

2.2

2.4

2.6

2.8

3.2

Volume (‘000 Tonnes).

21.6

23.0

24.6

26.4

28.5

31.2

Sales (Billion INR).

1.4

1.5

1.7

1.9

2.1

2.5

Volume (‘000 Tonnes).

9.5

10.2

11.3

12.4

13.4

14.7

Sales (Billion INR).

28.3

32.3

37.1

43.1

49.2

56.5

Volume (‘000 Tonnes).

491.6

547.7

609.7

667.9

731.9

807.7

66

Sector

Item

2005

2006

2007

2008

2009

2010

Sales (Billion INR).

101.6

109.0

118.5

134.9

151.8

172.6

Volume (‘000 Tonnes).

1,392.3

1,474.2

1,586.7

1,701.2

1,856.6

2,059.7

Sales (Billion INR).

20.9

22.8

25.4

28.3

31.8

36.3

Volume (‘000 Tonnes).

132.7

145.1

159.6

175.5

193.3

215.6

Sales (Billion INR).

10.7

11.6

12.7

14.1

15.6

17.4

Volume.

n/a

n/a

n/a

n/a

n/a

n/a

Sales (Billion INR).

n/a

0.1

0.1

0.2

0.5

0.7

Volume (‘000 Tonnes

n/a

0.2

0.3

0.4

0.9

1.3

Sales (Billion INR).

2.3

2.5

2.7

3.1

3.5

3.9

Volume (‘000 Tonnes).

15.3

15.7

16.5

17.6

18.8

19.9

Impulse and Indulgence Products.

Sales (Billion INR).

130.7

145.4

166..9

196.2

222.6

252.9

n/a

n/a

n/a

n/a

n/a

n/a

Nutrition / Staples.

Sales (Billion INR).

343.6

385.0

445.5

514.9

591.3

683.5

n/a

n/a

n/a

n/a

n/a

n/a

Oils and Fats.

Sauces, Dressings and Condiments.

Baby Food.

Snack Bars.

Spreads.

Volume.

Volume. Source:

Euromo nitor Internation al, “Packaged Food in India (No v 2010).”

67

Table 18. Compound Annual Rates of Change of Production and Consumption (Supply) of Selected Products. India. 1997 - 2007. Product

Change of Production (% / Year)

Change of Consumption (Supply) Per Person (% / Year)

Alcoho lic Beverages.

3.4

3.8

Animal Fa ts.

0.4

0.9

App les.

4.5

4.8

Beans.

2.2

3.6

Cereals (ex beer).

0.9

1.5

Cocoa B eans.

7.6

15.4

Crustaceans.

4.1

1.2

Fish, Seafood.

2.8

2.6

Fruits (ex Wine).

3.3

3.3

Ho ney.

0.2

-2.3

Milk (ex Butter).

3.7

3.6

-0.9

3.3

3.4

-0.5

-0.6

-0.4

Othe r Fruit.

1.9

1.8

Peas.

0.9

10.0

Potatoes.

3.6

3.5

Rape and Mustardseed.

3.4

3.4

Soyb ean O il.

4.2

9.1

Spices.

2.8

2.3

Sugar & Sweeteners.

0.8

-0.4

Sunflower Seed Oil.

7.7

-0.4

To matoes.

3.8

3.7

Tree nuts.

4.8

3.1

Oil Crops. Othe r Oilcrops Oil. Other P ulses.

68

Product

(% / Year)

Change of Consumption (Supply) Per Person (% / Year)

Vege table Oils.

2.4

3.2

Vege tables.

2.4

2.2

W heat.

0.3

2.1

W ine.

n/a

23.1

Source: Note:

Change of Production

Calculated from FAO food balance sheets. (Accessed Dec 2011) n/a = Not available.

Table 19. Indicative CIF Prices of Imports to India from Canada, the World and Major Competitors. 2010. Product (Units)

010110 Purebred Breeding Animal. (Each)

Canada

Ratio

(CAD / Unit)

(Canada / World)

7,737.47

0.161

Major Competitors Country

World

48,064.42

Ireland

47,121.51

USA

030419 Fish Fillets & Other Meat, Fresh / Chilled, Excluding Steaks Nesoi. (kg)

59.09

13.93

0.684

0.898

549,595.39

Israel

16,494.58 7,571.64

World

86.44

USA

101.61

China

911.49

Netherlands

32.12

UK

39.36

Germany

40.47

World

15.51

Singapore

17.71

Netherlands UK

69

39,555.90

France UK

010690 Animals, Live, Nesoi. (Each)

Price (CAD / Unit)

8.70 14.29

Product (Units)

030499 Fish Meat, Frozen, Except Steaks and Fillets Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

5.15

2.077

Major Competitors Country

World

2.48

Vietnam

2.24

Singapore Peru Norway

030613 Shrimps and Prawns, Including in Shell, Frozen. (kg)

030739 Mussels, Frozen, Dried, Salted or in Brine. (kg)

030741 Cuttle Fish & Squid, Live, Fresh or Chilled. (kg)

040310 Yogurt, Whether or Not Sweetened, Flavored or Containing Fruit / Cocoa. (kg)

4.90

3.24

5.29

20.48

70

0.907

0.544

1.474

8.569

Price (CAD / Unit)

10.62 1.18 10.65

China

1.93

World

5.40

Thailand

6.53

Unidentified country

7.78

Pakistan

3.27

UK

5.48

USA

6.25

World

5.96

UK

5.79

Singapore

6.13

Germany

7.62

Netherlands

5.08

New Zealand

2.44

World

3.59

Yemen

3.72

Oman

4.11

Bahrain

3.17

UAE

3.58

Indonesia

2.49

World

2.39

Spain

2.10

France

2.83

Germany

1.87

USA

4.84

Netherlands

1.38

Product (Units)

040410 Whey & Modified Whey Whether or Not Concentrated Containing Added Sweeteners. (kg)

051000 Ambergris, Castoreum Etc; Glands Etc for Pharmacy. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

0.79

11.03

0.380

1.181

Major Competitors Country

World

2.08

UK

1.32

France

2.06

USA

2.84

New Zealand

6.98

Denmark

6.25

World

9.34

USA

8.52

New Zealand

7.62

Italy Pakistan

051110 Bovine Semen. (kg) 051199 Dead Horses, Swine Etc (Inedible) & Products Nesoi. (kg)

060313 Fresh Cut Orchids and Buds. (kg)

071220 Onions, Dried (Powder Etc), Not Further Prepared. (kg)

4.35 2,234.42

0.350 69.935

5.53

71

2.136

1.575

91.85 6.97

UAE

28.88

World

12.42

USA

14.78

World

31.95

USA

27.10

Thailand

3.76

Price (CAD / Unit)

45.12

Hong Kong

104.96

Ireland

157.66

World

1.76

Thailand

1.73

USA

3.82

China

4.74

UK

3.20

Singapore

3.60

World

3.51

USA

3.25

Egypt

4.60

Brazil

2.53

Taiwan

9.77

UK

6.40

Product (Units)

071310 Peas, Dried Shelled, Including Seed. (kg)

071320 Chickpeas (Garbanzos), Dried Shelled, Include Seed. (kg)

071331 Beans (Vigna Mungo (L.) Hepper Etc), Dried Shelled. (kg)

071340 Lentils, Dried Shelled, Including Seed. (kg)

080131 Cashew Nuts, Fresh or Dried, in Shell. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

0.33

0.94

0.45

0.87

1.13

72

0.971

1.593

0.369

1.012

1.076

Major Competitors Country

Price (CAD / Unit)

World

0.34

USA

0.38

Australia

0.35

Russia

0.31

Ukraine

0.31

France

0.33

World

0.59

Australia

0.55

USA

1.00

Tanzania

0.48

Mexico

1.14

Argentina

0.84

World

1.22

Myanmar

1.19

Australia

1.28

Tanzania

1.40

Kenya

1.27

Namibia

1.11

World

0.86

USA

0.85

Australia

0.83

Russia

0.71

Brazil

0.83

Unidentified Country

0.98

World

1.05

Cote d’ Ivoire

0.86

Tanzania

1.46

Benin

0.98

Guinea-Bissau

1.15

Ghana

0.89

Product (Units)

080211 Almonds, Fresh or Dried, in Shell. (kg)

080810 Apples, Fresh. (kg)

080920 Cherries, Sweet or Tart, Fresh. (kg)

090940 Seeds of Caraway. (kg)

091030 Tumeric (Curcuma). (kg)

091099 Spices, Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

5.87

1.24

3.98

2.61

2.62

579.23

1.442

1.216

2.823

1.500

1.124

629.598

Major Competitors Country

World

4.07

USA

4.01

Australia

4.78

China

4.24

Afghanistan

4.13

UAE

3.81

World

1.02

China

0.91

USA

1.16

Chile

1.03

New Zealand

1.29

Australia

1.14

World

1.41

Chile

1.53

Iran

1.26

USA

1.19

Australia

3.38

Thailand

0.48

World

1.74

Afghanistan

1.80

Finland

1.38

Egypt

1.47

Syria

2.11

Pakistan

2.26

World

2.33

Indonesia

2.54

Myanmar

1.82

Vietnam

2.52

China

2.69

Nigeria

2.11

World

0.92

Pakistan

0.77

Nepal

0.57

Saudi Arabia

73

Price (CAD / Unit)

22.52

Germany

6.44

Morocco

3.46

Product (Units)

110290 Cereal Flours, Nesoi. (kg)

110710 Malt, Not Roasted. (kg)

110811 Starch, Wheat. (kg)

110819 Starches, Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

4.82

17.13

9.76

0.18

2.340

22.840

15.742

0.400

Major Competitors Country

Price (CAD / Unit)

World

2.06

Germany

2.98

USA

5.97

Ukraine

0.76

Thailand

0.66

Singapore

0.82

World

0.75

China

0.68

Germany

2.85

World

0.62

France

0.55

Belgium

1.56

Germany

1.20

Hong Kong

1.67

China

1.73

World

0.45

Thailand

0.44

Vietnam

0.45

Philippines

0.38

Japan

3.13

USA

0.59 1.47

120750 Mustard Seeds, Whether or Not Broken. (kg)

1.47

1.000

World

121190 Plants & Parts Etc for Medicaments Etc Nesoi. (kg)

1.73

1.663

World

1.04

Congo

0.42

Australia

8.27

Pakistan

0.73

Vietnam

0.61

Netherlands

6.64

World

1.03

Morocco

1.94

China

0.88

Sri Lanka

0.46

Japan

0.66

Indonesia

0.39

121220 Seaweeds & Other Algae Fresh or Dried Whether or Not Ground. (kg)

1.56

74

1.515

Product (Units)

130219 Vegetable Saps and Extracts, Nesoi. (kg)

130239 Mucilage & Thickner Whether or Not Modified, Form Vegetable Products Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

45.52

5.21

0.425

Country

1.26

151499 Rapeseed, Colza, Mustard Oil & Fractions Thereof, Nesoi. (kg)

1.29

151590 Fixed Vegetable Oil, Refined or Not, Nesoi, Not Chemically Modified. (kg)

1.35

16.23

1.000

0.977

1.570

6.315

23.55

China

27.35

USA

14.72

Italy

71.16

Germany

15.88

France

32.09

World

12.25

USA

12.68 23.43

Denmark

19.57

Chile

10.34

World

1.26

Japan

3.69

World

1.32

Italy

1.39

Singapore

2.26

World

0.86

Nepal

0.75

Ghana

0.98

Bangladesh

0.90

Benin

0.90

Vietnam

0.47

World

2.57

Germany

6.69

USA

1.36

Malaysia

3.42

75

1.745

9.59

China

France

160239 Prepared Etc. Poultry Meat, Except Turkey, Nesoi. (kg)

Price (CAD / Unit)

World

Philippines

151419 Rapeseed/colza Oil & Fractions, Low Erucic Acid, Nesoi. (kg)

151800 Animal / Vegetable Fats & Oils Chemically Modified; Inedible Mixture Etc. (kg)

1.933

Major Competitors

14.33 0.91

Nepal

15.79

World

1.96

Netherlands

2.09

Thailand

2.24

Denmark

0.86

Italy

7.93

France

4.26

Product (Units)

160242 Prepared or Preserved Swine Nesoi, Shoulders Etc. (kg)

160249 Prepared Etc. Swine Meat, Offal, Etc. Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

6.06

4.39

160290 Animal Meat Nesoi Blood Preparations of Any Animal, Prepared / Preserved. (kg)

5.07

160411 Salmon, Prepared or Preserved, Whole or Pieces. (kg)

8.21

160414 Tunas / Skipjack / Bonito Prepared / Preserved Not Minced. (kg)

170199 Cane / Beet Sugar Chemically Pure Sucrose Refined Nesoi. (kg)

5.34

1.21

76

0.948

0.790

1.028

1.743

1.459

1.704

Major Competitors Country

Price (CAD / Unit)

World

6.39

Spain

7.97

UAE

4.34

Italy

13.97

Germany

10.23

World

5.56

Spain

6.55

France

6.01

Netherlands

4.49

Italy

6.90

Brazil

8.95

World

4.93

Denmark

4.83

World

4.71

Thailand

5.10

Australia

4.12

UK

4.22

Malaysia

5.44

Japan

6.02

World

3.66

Thailand

3.23

Malaysia

5.52

UK

6.96

Australia

3.36

Singapore

2.32

World

0.71

Brazil

0.65

Thailand

0.81

UAE

0.68

Spain

0.72

Malaysia

0.70

Product (Units)

170211 Lactose & Lactose Syrup Containing 99% or More Lactose by Weight. (kg)

170220 Maple Sugar and Maple Syrup. (kg)

170490 Sugar Confection (Including White Chocolate), No Cocoa, Nesoi. (kg)

180100 Cocoa Beans, Whole or Broken, Raw or Roasted. (kg)

180690 Cocoa Preparations, Not in Bulk Form, Nesoi. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

1.29

15.63

3.90

3.53

2.10

77

0.777

1.587

2.010

0.944

0.577

Major Competitors Country

Price (CAD / Unit)

World

1.66

Germany

3.05

Netherlands

1.59

USA

1.34

New Zealand

1.37

France

0.89

World

9.85

USA

10.80

France

6.03

Italy

6.03

Australia

7.22

Mexico

19.35

World

1.94

China

1.58

Australia

3.57

Indonesia

1.66

Thailand

2.07

Malaysia

1.49

World

3.74

Indonesia

4.24

Dominican Republic

3.57

Ghana

3.58

Ecuador

3.41

Uganda

3.43

World

3.64

Singapore

3.46

Italy

5.13

Switzerland

7.39

Netherlands

4.28

UAE

3.10

Product (Units)

190190 Malt Extract; Flour, Meal, Milk Etc Products Etc Nesoi. (kg)

190230 Pasta, Prepared Nesoi. (kg)

190240 Couscous. (kg)

190531 Cookies (Sweet Biscuits). (kg)

190532 Waffles and Wafers. (kg)

190590 Bread, Pastry, Cakes, Etc Nesoi & Puddings. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

8.46

0.86

0.41

4.95

3.65

3.87

78

3.021

0.642

0.209

2.633

1.241

1.955

Major Competitors Country

Price (CAD / Unit)

World

2.80

Netherlands

3.03

Singapore

2.43

Thailand

3.82

Bangladesh

3.82

USA

2.00

World

1.34

Nepal

1.32

Italy

1.24

Singapore

2.42

Thailand

2.04

South Korea

1.64

World

1.96

Singapore

2.20

Italy

1.47

Thailand

2.87

Nepal

1.47

South Korea

1.43

World

1.88

Malaysia

1.40

Indonesia

2.27

UK

2.26

UAE

1.76

Singapore

3.56

World

2.94

Poland

5.52

UAE

1.82

Indonesia

1.89

Malaysia

2.00

Turkey

1.95

World

1.98

South Korea

2.49

USA

3.44

Indonesia

1.52

China

1.37

Thailand

1.66

Product (Units)

200390 Mushrooms, Nesoi, Prepared / Preserved Other than by Vinegar. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

0.66

0.303

Major Competitors Country

World

2.18

China

2.01

South Korea

3.94

Afghanistan

5.20

France

200559 Beans, Not Shelled, Prepared / Preserved Nesoi, Not Frozen. (kg)

200969 Grape Juice, Nesoi, Not Fortified with Vitamins / Minerals. (kg)

200980 Juice of Any Single Fruit / Vegetable Unfermented Nesoi. (kg)

200990 Mixtures of Fruit and / or Vegetable Juices. (kg)

1.62

6.39

1.72

1.55

79

1.191

3.672

1.265

1.000

Price (CAD / Unit)

10.88

Singapore

2.61

World

1.36

UK

1.33

Italy

0.81

Thailand

3.56

UAE

3.48

USA

1.39

World

1.74

Spain

1.66

Italy

2.29

Chile

3.52

Netherlands

2.87

Sri Lanka

3.64

World

1.36

USA

4.00

Malaysia

1.36

UAE

1.50

South Africa

1.07

Germany

4.93

World

1.55

USA

3.41

Philippines

1.64

Sri Lanka

0.90

Bhutan

0.84

Thailand

0.63

Product (Units)

210120 Tea or Mate Extracts / Essences / Concentrates & Preparations. (kg)

210210 Yeasts, Active. (kg)

210220 Yeasts, Inactive; Other Single-cell Dead Microorganism. (kg)

210390 Sauces Etc. Mixed Condiments and Seasonings Nesoi. (kg)

210410 Soups and Broths and Preparations Thereof. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

5.06

9.26

25.70

0.99

3.74

80

0.554

2.551

9.049

0.390

1.003

Major Competitors Country

Price (CAD / Unit)

World

9.14

Kenya

11.56

USA

8.42

China

12.83

Unidentified Country

10.94

UK

9.18

World

3.63

China

2.54

USA

19.55

UK

5.69

France

10.06

Germany

10.11

World

2.84

Estonia

10.42

Mexico

7.05

Brazil

0.68

UK

7.02

Turkey

1.95

World

2.54

USA

2.34

China

1.27

Switzerland

5.29

Singapore

3.36

Thailand

2.81

World

3.73

Germany

2.83

UK

4.09

USA

7.87

Switzerland

10.86

South Korea

3.53

Product (Units)

210500 Ice Cream and Other Edible Ice, with Cocoa or Not. (kg)

210610 Protein Concentrates & Textured Protein Substances. (kg)

210690 Food Preparations Nesoi. (kg)

220210 Waters, Including Mineral & Aerated, Sweetened or Flavoured. (L)

220421 Wine, from Grape Nesoi & Grape must with Alcohol, Not over 2 Litres. (L)

220710 Ethyl Alcohol, Undenatured, Alcohol Not under 80% by Volume. (L)

Canada

Ratio

(CAD / Unit)

(Canada / World)

4.93

9.63

16.53

0.74

9.19

1.40

81

0.913

1.390

3.586

1.682

1.831

0.680

Major Competitors Country

Price (CAD / Unit)

World

5.40

France

6.02

UAE

4.18

Switzerland

7.36

Swaziland

6.98

Bangladesh

7.67

World

6.93

USA

6.60

New Zealand

7.78

Netherlands

8.82

Switzerland

9.37

China

3.97

World

4.61

USA

11.99

Thailand

1.44

Singapore

9.74

Netherlands

5.19

Denmark

5.20

World

0.44

Bangladesh

0.37

Bhutan

0.45

UAE

0.92

Malaysia

2.19

UK

0.83

World

5.02

Italy

5.42

France

6.83

Australia

3.84

UK

5.91

New Zealand

6.93

World

2.06

Germany

8.49

Italy

2.08

UK

1.97

China

4.16

Pakistan

1.16

Product (Units)

220830 Whiskies. (L)

220870 Liqueurs and Cordials. (L)

220890 Cordials, Liqueurs, Kirschwasser, Ratafia, Etc. (L)

230250 Bran Sharps Residue from Milling Leguminous Plants. (kg)

230690 Oilcake Etc. from Vegetable Fats and Oils Nesoi. (kg)

230990 Animal Feed Prep Except Dog or Cat Food, Retail Packaged. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

4.55

7.01

5.04

0.63

1.35

6.59

0.789

0.837

1.775

5.727

4.821

2.047

Major Competitors Country

World

5.77

UK

5.61

UAE

6.65

China

6.17

USA

7.57

Netherlands

6.65

World

8.38

UK

9.73

France

9.00

Netherlands

4.16

USA

6.32

Italy

4.74

World

2.84

UK

2.80

China

3.10

Mexico

3.69

Italy

2.26

France

3.81

World

0.11

Nepal

0.11

Sri Lanka

0.11

Tanzania

0.10

USA

0.14

Italy

0.14

World

0.28

Nepal

0.26

Ghana

0.08

Italy

1.26

Sri Lanka

0.23

World

3.22

Sri Lanka

6.47

China

2.61

Thailand

3.12

USA

2.25

Germany

82

Price (CAD / Unit)

14.96

Product (Units)

330112 Essential Citrus Fruit Oils of Orange. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

5.14

1.911

Major Competitors Country

World

2.69

Brazil

2.10

USA

7.79

Israel

8.16

UK

6.09

Italy

330113 Essential Citrus Fruit Oils of Lemon. (kg)

17.26

0.615

330129 Essential Oils, Nesoi. (kg)

19.12

17.84

1.182

0.682

28.07

USA

33.99

Italy

23.12

350300 Gelatin & Derivatives; Isinglass; Glues, Animal Origin Nesoi. (kg)

72.01

6.04

83

3.053

0.891

106.39

France

26.14

UK

42.33

World

16.18

China

15.06

USA

13.81

UK

31.68

Italy

17.66

Indonesia

23.36

World

26.17

Indonesia

30.08

China

330190 Concentrates Etc of Essential Oils, Nesoi. (kg)

9.84

World

Germany

330119 Essential Oils of Citrus Fruit, Nesoi. (kg)

Price (CAD / Unit)

10.84

Australia

223.88

EAU

177.86

France

44.58

World

23.59

China

30.01

USA

29.38

France

31.34

Germany

5.69

UK

8.90

World

6.78

Germany

9.79

Colombia

5.65

France

7.66

USA

6.79

UK

7.12

Product (Units)

350400 Peptones, Other Proteins & Derivatives Etc; Hide Powder. (kg)

Canada

Ratio

(CAD / Unit)

(Canada / World)

22.59

5.076

Major Competitors Country

World

4.45

USA

4.31

China

3.17

France

8.74

Germany

350510 Dextrins and Other Modified Starches. (kg)

350520 Glues Based on Starches. (kg)

410120 Whole Hides & Skin, Weight/skin