Australia’s well-known Hass avocados have finally made an entry into the Indian market.
Releasing the photos of the select avocados from the first shipment that has arrived, Australia’s outgoing High Commissioner to India Barry O’Farrell said: “Two-way agricultural trade is set to grow under #IndAusECTA.”
In 2021-22, India imported A$4.8 million of avocados, up from A$2.4 million in 2020-21 and A$1.6 million in 2019-20.
According to experts, the Indian market has a value of $30 million as access was granted earlier this year after Australia demonstrated that its high-quality avocados could meet India’s biosecurity and food import requirements.
The research was undertaken in cities such as Bangalore, Mumbai, and Delhi to assess the Indian market for Australian avocado growers.
The Avolution is responsible for bringing premium quality Hass avocados to the Indian market. It said in a comment:
“Excellent Team Work from Australia High Commissioner Barry O’Farrell’s team in Delhi, Minister for Agriculture Murray Watt’s team in Canberra. Working closely with the Indian Government to achieve a great outcome for Australian avocado growers and fresh healthy avocados for Indian consumers.“
Avocados Australia chief executive John Tyas said in a statement:
“We think India is going to be a great market for us to build and a great market for us to really dominate.”
The Indian market access comes after Australia secured reduced tariffs on several horticulture products through the Australia-India Economic Cooperation Agreement (AI-ECTA).
New access was announced in a Joint Statement by the Australian Prime Minister Anthony Albanese and the Prime Minister of India Narendra Modi on 11 March 2023.
It is reported that in the first 6 months of ECTA, Australian businesses have benefitted from lower tariffs on more than $12 billion worth in exports.
Minister for Trade and Tourism and Special Minister of State Senator the Hon Don Farrell said in a statement:
“Prime Minister Albanese and India’s Prime Minister Modi share an ambition to grow our trading relationship through our next free trade agreement with India, an ambitious Comprehensive Economic Cooperation Agreement, which will further strengthen our economic partnership and open new avenues for cooperation.”
The Australia-India Economic Cooperation and Trade Agreement (ECTA) entered into force on 29 December 2022 and with it came this excellent new trade opportunity for the Australian avocado industry.
Hort Innovation chief executive Brett Fifield said:
“Getting to the point the Australian government has with India today is no small feat. As well as significant work by the government, this trade agreement, which is enacted after ten successful shipments, has been informed by hundreds of hours of research.”
India does not produce avocados on a commercial scale and its key suppliers are New Zealand (41%), the European Union (39%) and Peru (17%) which are subject to India’s 30% Most Favoured Nation (MFN) import tariff.
In 2022, avocados were Australia’s seventh largest fruit crop, valued at A$363.8 million with the majority produced in Queensland (55%), WA (27%), and New South Wales (11%). At this stage, Hong Kong, Singapore and Malaysia are Australia’s major avocado markets.
Avocados Australia is optimistic about growth in the Indian market and has observed that Australia’s proximity to India is “very favourable” compared with its competitors.
India is a fast-growing market for avocados, considered a high-end product, and consumers are keen to try premium quality Hass avocados at affordable prices. India’s population is 1.4 billion and if the Australian avocado industry is able to get just 1 per cent of people to buy their product that’s a clear market of 14 million people.
