A NEW international trade deal means Riverland citrus producers will benefit from easier export access to one of the world’s biggest economies.
The federal government this week announced the finalisation of the Australia-India Economic Cooperation and Trade Agreement (AI ECTA), set to eliminate tariffs on more than 85 per cent of Australian goods exports to India.
Taylorville-based Devlins Pound Citrus director, Navjot Singh, said the new market would ensure Riverland citrus production remained sustainable.
“Developing a new market creates another avenue for our produce, and means we’re not so dependant on the traditional markets we’ve established,” Mr Singh said.
“We’re getting to a point where we’ve started to over supply those markets, so opening up India, with more than one billion people, is a massive deal.
“That’s one-seventh of the world’s population that will have access to our citrus at a slightly cheaper rate now.
“We’ve been focusing on the Asian countries for a long time now, and it’s a breath of fresh air to focus on another market where we’ve barely scratched the tip of the iceberg.”
Included in the agreement was a permanent quota for 34,000 tonnes of almonds, and 13,700 tonnes of oranges and mandarins, with an immediate 50 per cent tariff reduction, plus a reduction on tariffs surrounding bottled wine.
Mr Singh said oranges were a staple food for many sections of the Indian population.
“Like any market you’ve got to send the right produce, at the right time, to make it work,” he said.
“The few key fruits the Indian community like to consume are apples, bananas, and oranges. They’re the staples you’ll find at any roadside vendor.
“The Indian population has grown up on those three staples, so providing a good option for Australian navels, which have a good reputation overseas, is definitely a bonus.”
Barker MP Tony Pasin said the agreement would promote the expansion of local citrus and wine businesses.
“This deal will open up new opportunities for Riverland businesses which means more jobs and a stronger local economy,” Mr Pasin said.
“Australian exports to India are expected to grow to around $45 billion by 2035, lifting India into our top three export markets.
“This is amazing news for the citrus industry who already exports almost 3500 tonnes of citrus valued at $4.3 million to India.
“This will boost export opportunities for growers of almonds, citrus, dried grapes, olives, onions, potatoes, summer fruits, table grapes and vegetables.”
Mr Singh expected the full benefits of the agreement to be seen when international shipping costs – inflated by the impacts of Covid-19 – decreased.
“The lower tariffs will make fruit more accessible to a wider audience overseas, but we’ve got to keep in mind that shipping costs are at a record high,” Mr Singh said.
“Although we’re getting a bit of relief on the tariff front, we’re getting shipping rates which we’ve never seen before.
“We probably won’t see the extent of this trade agreement until three to five years when shipping starts to normalise.
“We should see some relief immediately this season… (but) in five to 10 years it could very well be the next China.”
