Exploring the benefits of agribusiness synergy between Brazil and India amid shared opportunities.

Brazil and India are increasingly being recognized as natural partners in agriculture, livestock, and agribusiness. Both nations share several features that make this partnership promising: abundant natural resources, rapidly developing economies, a significant agricultural sector, and a youthful population with growing aspirations. While these attributes position Brazil and India to address global food demands collectively, they also face shared challenges such as food security and the adverse effects of climate change.

In 2023, bilateral trade between Brazil and India stood at $11.5 billion, with India exporting $6.9 billion worth of goods and importing $4.6 billion from Brazil. Despite this robust exchange, Brazil recorded a trade deficit of over $2 billion. This trade imbalance highlights the untapped potential for collaboration, particularly in agriculture, agribusiness, crop sciences, and livestock sciences.

Brazil has achieved notable success in agronomy and high-yield crop cultivation, particularly with corn, soybeans, and groundnuts. Similarly, advances in livestock—such as higher milk yields, improved meat quality, and better animal health—position Brazil as a global leader. India, with its vast agricultural base and growing demand for food products, stands to benefit from leveraging Brazil’s expertise in these areas.

As BRICS members, Brazil and India are eager to deepen their engagement across multiple sectors. For a sustainable partnership, this relationship must rest on four pillars: trade, investment, research, and technology.

Several commodities offer significant scope for trade, including oilseeds, pulses, cotton, animal feed, and ethanol. India’s domestic production of oilseeds and pulses suffers from low yields, leading to frequent supply shortages and increased reliance on imports. Brazil’s high-yield farming practices can serve as a model to address these challenges.

Cotton is another area ripe for collaboration. Although India has the largest area under cotton cultivation globally (12-13 million hectares), production inconsistencies and quality issues have constrained exports and increased the demand for premium varieties like extra-long staple cotton. Brazil’s expertise in this sector could provide solutions.

India’s expanding poultry sector and increasing maize diversion for ethanol production have tightened the feed market. Here, Brazil’s high-yield maize farming can help alleviate pressure.

To facilitate trade, experts emphasize the need to strengthen banking ties between the two nations. For instance, direct issuance of Letters of Credit without intermediaries can reduce transaction costs and encourage smoother exchanges.

Investment opportunities abound in India’s food processing industry, where 100% foreign direct investment is allowed under the automatic route. Key areas include:

• Fruits and vegetables processing.

• Livestock and dairy sectors, particularly for genetic improvement, enhanced animal health, and value-added products.

• Warehousing, logistics, and supply chain management, which can benefit from Brazil’s technological advancements.

Digitization and other technological interventions can further streamline supply chains, reducing costs and improving efficiency.

Both Brazil and India possess strong research institutions capable of joint ventures in crops such as pulses, oilseeds, and sugarcane. Climate-resilient agriculture and improved water-use efficiency are critical areas where collaborative research can yield significant benefits.

Technology exchange offers immense potential across multiple domains, including:

• Infotech and biotech for precision farming.

• Satellite technology for monitoring crop health.

• Nanotechnology, field robotics, and drones for advanced farming practices.

India’s burgeoning agritech startup ecosystem can serve as a springboard for integrating these technologies into mainstream agriculture.

To realize these opportunities, a conducive policy environment is essential. Establishing a Brazil-India Agribusiness Promotion Forum would provide a structured platform for stakeholders to explore collaborative projects. This forum should include representatives from corporates, researchers, financial institutions, technologists, and policy analysts from both countries. By identifying specific areas of mutual interest, the forum can offer actionable recommendations to enhance partnerships.

The combined agricultural potential of Brazil and India positions them to play a crucial role in addressing global food security. However, realizing this vision requires strategic alignment and sustained efforts. By focusing on trade, investment, research, and technology, the two nations can build a partnership that not only benefits their economies but also contributes to global food security and climate resilience.

G. Chandrashekhar is an economist, senior journalist, and policy commentator. He provides policy inputs to the government and serves as an Independent Director on corporate boards.