The ongoing rouble crisis has started reducing Russian orders for its export
Guar gum exporters, facing a steep decline in foreign orders due to falling crude oil prices, have another reason to worry.
The ongoing rouble crisis has started reducing Russian orders for its export.
Shipment orders of other agri commodities have also declined steeply since the Western world imposed economic sanctions on Russia after the latter’s intervention in Ukraine.
“Orders from Russia have declined by at least 30 per cent in the October–December quarter. This is unlikely to improve anytime soon,” said Bheru Jain, partner with Rajasthan Gum, one of India’s largest guar gum exporters to that country.
Guar gum tops the list of agri commodity exports to Russia, with shipment of $51.5 million in 2013-14 (though, less than one per cent of our overall guar gum export, of $22 billion.
However, exporters of other commodities have faced a similar decline in orders.
“We would be able to export 15-20 containers, 50 per cent lower than our target for this year,” said Ashok Sharma, chief executive, auto & farm strategy, Mahindra & Mahindra.
The Russian currency depreciated by 24 per cent in the past month to trade at 56.54 to the dollar at present, a sharp recovery after hitting a low of 68 in early December.
“India’s export of groundnut to Russia have dried up due to the rouble's steep fall.
"There will be no further exports this year,” said Kishore Tanna, chairman of Indian Oilseeds and Produce Export Promotion Council.
Of around Rs 6,000 crore (rs 60 billion) of groundnut export annually, Russia constitutes Rs 60 crore (Rs 600 million).
