India’s beef industry breathes again after Supreme Court verdict

Photo: Abdul Faheem Qureshi (C) the head of the Muslim All IndiaJamiatul Quresh Action Committee talks to media after the hearing at Supreme Court in New Delhi, India July 11, 2017. REUTERS/Adnan Abidi

Processors and exporters expect consultation process ordered by the apex court to exclude buffalo from the slaughter trade ban

India’s beef industry, reeling under a shortage of animal supply due to a federal ban on the trading of cattle for slaughter, says it will now formally consult with the government on a revised version of its notification after the Supreme Court ordered a three-month stay on its implementation for review.

The Supreme Court on Tuesday became the second bench of judges to order a stay. Salaam Gateway had earlier reported how the notification announced on May 23 was stayed by the Madras High Court on May 30 for four weeks.

The ban has already created a supply shortage in the market, crippling India’s production volume and exports.

The notification came within two months of a new Uttar Pradesh state government assuming office in March. It started cracking down on ‘illegal and unauthorised’ small and medium-sized slaughterhouses that are part of India’s largely unorganised meat sector, which nevertheless has a substantial share in the country’s domestic production and exports.

As a result of the ban, exports dropped to 176,990 metric tonnes (MT) valued at $530 million in April-May from 189,011 MT worth $554 million during the same period last year.

India recorded an annual export of 1.33 million MT worth $3.93 billion in the financial year April 2016 to March 2017, according to data compiled by the Agricultural and Processed Food Products Export Development Authority.

The country is expected to record negative growth in beef exports for the current full financial year.

With the Supreme Court now staying the notification for three months until the central government prepares a revised version by the end of August followed by a stipulated time frame for receiving public objections and suggestions, beef traders and exporters hope the situation will start to normalise.      

“As of today we have some problems in getting animals for slaughter as supply had fallen at livestock markets due to the notification, but we are hoping that this order will help normalise the supply shortage,” said D.B. Sabharwall, secretary-general of the All India Meat and Livestock Exporters’ Association.

“The court has stayed the implementation of the regulation and given direction to the government to revise the regulation after consultation with stakeholders. Although we have had a number of informal meetings with the government on the issue, they will now formally consult with us. We will put forward our views and try to get those incorporated in the new regulation,” he told Salaam Gateway.

‘BUFFALO HAS NOTHING TO DO WITH COW’

Reiterating the industry body’s main demand of excluding buffalo from the list of banned cattle in the notification, Sabharwall, who is also a senior executive with the country’s largest beef exporting company, Allanasons Pvt. Ltd., said, “As far as the meat export industry is concerned, we had told the government what we need is a free trade of buffalo so that small and marginal farmers can bring surplus animals to the market. We also want buffalo to be taken off the banned cattle list.”

India is the world’s largest exporter of buffalo meat, which is sold as beef or carabeef in the international market. Top export destinations are Vietnam, Malaysia, Egypt, Indonesia, Saudi Arabia, Iraq, Algeria, United Arab Emirates, Philippines, and Oman.

Calling the Supreme Court verdict “a very good move for the industry”, Sirajuddin Qureshi, president of the All India Jamiatul Quresh, told Salaam Gateway, “If the government continues to include buffalo and ban its transportation, marketing and sale and purchase, the entire industry will collapse. That’s because the major business is done only in buffalo. The export is also buffalo, what people are eating is also buffalo.”

He is hopeful the government will exclude buffalo from the revised notification. “The industry has already suffered a lot. Buffalo has nothing to do with cow, biologically. So it’s totally out of context.

“We are going to meet again the ministers concerned in the central government. Hopefully, the industry will be all right,” said Qureshi, who is also the managing director of Hind Agro Industries Ltd., a joint venture between Hind Industries Ltd. and the Government of Uttar Pradesh, with a beef production capacity of 400 MT and annual revenue of more than $54.5 million.

Small and mid-sized exporters are also happy with the Supreme Court verdict. “The market condition is not good as we are not able to procure animals because of the notification. If the government is saying that they will bring in some changes in the notification, it’s a good thing for the enhancement of business. It’s definitely a positive sign,” said Faraz Raif, manager, operations, Mash Agro Foods Ltd., an Uttar Pradesh-based beef exporting company.

CONSULTATION PROCESS

Unlike the May notification which, according to the petitioners, was issued without much consultation with stakeholders, the revision process is expected to seek suggestions and objections from the industry and people concerned. 

“The government will now try to look into all the objections. They will look at the applications and representations already made to them, study the petitions before the courts, and then hopefully implement the changes we have asked for,” said Abdul Faheem Qureshi, who filed the petition before the Supreme Court. A lawyer by profession, he also manages the All India Jamiatul Quresh Action Committee, a welfare organisation for meat traders and butchers based in Hyderabad.

“I think exporters or any other person in India will not have any objection to this notification if the government includes only cow and leaves out other bovine animals,” he told Salaam Gateway.

“Even if there is a progeny of the cow in the notification, we will challenge that. They have no right to restrict the slaughter of bull and bullock. If they exclude only buffalo from the notification then it will also be discrimination with other animals,” Abdul Faheem said.

Although the May notification wasn’t implemented strictly because of the Madras High Court stay, beef traders and transporters were still facing difficulties in carrying out their business due to increasing incidents of violence, allegedly by ‘cow vigilantes’.

“The Supreme Court decision is in favour of the meat industry. It should help normalise the supply situation. However, there is still fear among people who are engaged in this profession. Transportation of animals is still a problem. That fear should go,” said Dr. Surendra Kumar Ranjhan, director of Mirha Exports Pvt. Ltd.

Abdul Faheem agrees there is an element of panic among cattle traders, farmers and agriculturists, who are not bringing animals to market. “Now we need to restore confidence among them. We need to inform people about the judgement of the Supreme Court. They should not have any fear. They should come to the cattle market as usual.”

“I don’t think there is going to be any problem, because it’s a Supreme Court order, binding on everybody” added Sabharwall.

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