With the arrival of a senior Australian delegation in India, a government-industry push into the expanding Indian agriculture market has begun.
The delegation, led by Australian Agriculture Minister Murray Watt and comprised of 12 senior Australian agribusiness representatives, will showcase Australia’s high-quality produce and advocate for stronger bilateral economic links.
The delegation will spend three days engaging with the Indian government, business, and industry executives in Delhi and Mumbai.
Minister Watt said he would attend many high-level talks with Indian Government Ministers this week.
“And we are seeing that relationship develop into better agricultural trade relationships. Recently, we opened market access for Australian Hass avocados to India and Indian okra to Australia through the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA),” Minister Watt stated.
The AI-ECTA went into effect on 29 December 2022.
Minister Watt said lower tariffs on more than $12 billion in exports had benefited Australian companies in the first six months of Australia’s Free Trade Agreement with India.
The Minister noted that it highlights the continued efforts the Australian Government is undertaking to expand agricultural commerce with India, one of the world’s major food markets.
“This is only the beginning, with negotiations moving swiftly on an Australia-India Comprehensive Economic Cooperation Agreement (CECA) to further expand market access for Australian producers,” Minister Watt said.
It has opened up new and financially significant agricultural markets for various industries, including sheep meat, seafood, wool, cotton, forestry, infant formula, wine, and some nuts and fruits.
It has served as an excellent launching pad for expanding and deepening the trading relationship through the CECA, which is now being negotiated.
CECA will work to strengthen and expand market access for Australian agricultural products.
Minister Watt stated that CECA intends to go beyond AI-ECTA by increasing market access for Australian food commodities covered by AI-ECTA and ensuring favourable results for items not included in the first agreement. The visit will assist in generating momentum ahead of the next CECA negotiation meeting, which will occur later this month.
“The size and scale of this market means it is a key diversification opportunity for Australian agriculture and food commodity exports as we respond to global trade challenges. India’s growing middle-class is a key market for high-quality Australian produce, opening new opportunities for agricultural trade, including as inputs to the production of final high-quality Indian products,” Minister Watt said.
“Through the Agricultural Trade and Market Access Cooperation grants program, the government is also supporting industry-driven projects aimed at expanding and diversifying markets for sectors impacted by global trade disruptions,” Minister Watt added.
This includes assistance with cooperative projects in the Indian market resolving supply chain concerns, marketing Australia’s high-quality products overseas, and preparing exporters to grab chances offered by the AI-ECTA and prepare for future opportunities under CECA, such as:
- $480,000 for the Australian Nut Industry Council to expand markets for Australian macadamias, walnuts, pistachios and pecans
- $300,000 for the Infant Nutrition Council to develop new export markets for Australia’s infant formula industry
- $574,000 for Grains Australia Limited for providing further opportunities to diversify the production and export of Australian grain
- $350,000 for Hort Innovation to map, understand and address reported issues in the horticultural supply chain to India
- $145,000 for Meat and Livestock Australia to initiate trade, marketing and business development programs
- $489,000 for Australian Grape and Wine to advance their roadmap to broaden markets and drive growth in export opportunities
- $165,000 for Seafood Industry Australia to build on market diversification activities, particularly for southern rock lobsters.
