As the fight against the pandemic reaching its peak, and confidence in opening up economies is growing, India and Australia are standing on heaps of opportunities around two agricultural trade. A new Policy Insight by Neha Sikarwar and Basundhara Bhattarai reviews recent facts and offer some analysis about such opportunities. Some highlights of the paper are given below and the full paper can be downloaded here.
Despite India’s focus on domestic production and self-sufficiency, the aperture within anticipated demand and supply might grow out to 2035.The agriculture growth in India is unevenly distributed and deficiencies to fulfil concentrated demand for high-value products like proteins, variety of fruits, and packaged goods, etc., will hinder the objective of gaining food autonomy. Australia partakes a long lane of opportunities in contributing to the agribusiness space ofIndia. Australia, utilizing its expertise, can offer its agricultural science experience to recuperate the status of food security in India with increased productivity, sustainability, and resilient food system by augmenting the growing demand for staple and high-value products.
For Australia, trade potential lies in the supply of commodities that are deficits in production like pulses, grains, horticulture, oilseeds, and likewise, in the vaue-added products and for providing specialised services to India. There is also a significant demand for Australian dairy products in India, such as milk powder, fats, oils, casein, butter, whey, and lactose. Despite tariffs and trade regulations, demand for cheese and cream in the Indian market is also surging. As a significant section of India isleaning towards more healthy and consciousfood choices, there stands a greater scope forAustralian value-added dairy products likefortified milk or A2 milk. Australian skimmed milk powder exports are continuing to grow and are competing with local distributors.
There are high average tariffs for pulses and grains. Although there is an advancement in logistics, there is a lack of a cold chain. Australian exports are competing with domestic suppliers and American andEuropean Union producers; therefore, the products should be of high quality.