India trade deal sures up Australian Hass avocado exports

Australia and India have agreed on two-way agricultural trade that will provide new market access for Australian Hass avocados to India and access for Indian okra to Australia.

It is part of the the Australia-India Economic Cooperation and Trade Agreement which came into play on December 29, 2022, under which tariffs on avocados will be phased out by January 1, 2028, providing additional benefits to exporters.

The deal could potentially be worth about $25 million, according to the federal government.

The trade protocol finalisation is dependent however on the successful completion of 10 trial Hass avocado shipments to India, something the industry is confident it can accomplish.

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Federal agriculture minister Murray Watt said India's large population and diversifying economy was creating new demand for premium and healthy produce which Australia was well placed to deliver on.

"This agreement showcases Australia's high-quality produce to a larger global market and contributes to further export diversification opportunities for the Australian avocado industry," Mr Watt said.

"India is an important trading partner for Australia. In 2021, India was Australia's sixth largest two-way goods and services trading partner at $34.3 billion."

The product given easier access to Australia, okra, is a green or white, pod-like vegetable typically used in soups, stews and gumbo, often used with lemon and accompanies lamb or chicken well.

"I'm pleased Australians will now be able to enjoy Indian okra which is known for its nutritional benefits and versatility in cooking," he said.

HORT Innovation has claimed some of the credit for the deal, declaring a $3 million investment into research has supported the outcome.

Hort Innovation chief executive Brett Fifield said in-market consumer insights gathering, inbound trade missions and strategic planning through a targeted export strategy have also been a focus for the industry.

"Getting to the point the Australian government has with India today is no small feat," he said.

"As well as significant work by the Government, this trade agreement, which is enacted after 10 successful shipments, has been informed by hundreds of hours of research.

"That includes developing novel phytosanitary measures for the fruit, which involve rigorously applying treatments to our avocados to prove they are pest and disease free with no impact on quality."

Mr Fifield said the phytosanitary risk science Hort Innovation delivers with agencies, such as the CSIRO, contributes to international research in this field.

AVOCADOS Australia CEO John Tyas described the deal as a "game changer".

"The Australian government has worked very hard and closely with industry to achieve a commercially viable and workable protocol that all Australian Hass avocado growers will be able to use," Mr Tyas said.

"We acknowledge that final approval of the protocol will be dependent on 10 successful trial shipments, and we are very confident we can achieve that."

He also acknowledged the efforts of industry players who supported the government through the process.

"We believe there are great opportunities for Australian avocados in India and it is a market with enormous growth potential," Mr Tyas said.

The country's largest exporter of avocados, The Avolution, welcomed the news.

The Avolution CEO Antony Allen said India was a fast-growing market and was just beginning its love affair with avocados.

"We are thrilled to bring our premium quality Hass avocados to Indian consumers. We undertook an extensive market investigation tour in January 2023 to, Bangalore, Mumbai, and Delhi to assess the market and retail situation in preparation for the opening of the Indian market for us," Mr Allen said.

"This new market access is a great opportunity for us to expand our export business and strengthen our relationship with Indian consumers, and we look forward to building a long-lasting relationship with our Indian customers."

The Avolution growers have been planting avocado trees to increase volumes, and the company is confident its production will meet the growing demand in India.

The avocados will be flown and shipped by sea to India via a specialised cold chain to ensure they reach consumers in optimal condition.

"We have seen great success in our main export markets, including Hong Kong, Singapore and Malaysia, and we are excited to bring the same quality avocados to India," Mr Allen said.

Australian Fresh Produce Alliance (AFPA) CEO Claire McClelland said the new access demonstrates the positive impact political support has on achieving new and improved technical market access for Australian horticulture exports.

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"The future success of Australia's horticulture sector is underpinned by creating and capitalising on export opportunities," Ms McClelland said.

"While trade agreements are important, the horticulture industry relies on technical market access to draw benefits from reduced tariffs and improved trading conditions, so to see new market access for avocados is a great result for industry."

"India is an emerging market for Australian fresh produce, with Australian citrus growers exporting more than $18 million of oranges and mandarins to India in 2019-21.

"We see there being a substantial opportunity to grow avocado exports to India, which will support avocado growers export ambitions."

A key part of accessing vital export opportunities for the horticulture sector is the requirement for technical market access protocols.

The AFPA has previously called on Government to prioritise new technical market access for fresh produce with key trading partners as a strategic objective.

THE Australian avocado industry has been highly active over the past two years in pushing to sure up more export opportunities.

An Australian Avocados trade development project included an outbound mission to the Indian market to help growers prepare market access applications.

There has also been the development of an avocados export strategy which defines the trade roadmap for the industry for the next five years, used as a supporting document for market access application

An avocado market research project focussed on providing growers with India and Thailand consumer and retailer behaviour information was also produced, aiming to help exporters to build the capacity and capability to service the Indian market.

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