India And Australia Increase Farm Trade, Despite China’s High Tariffs

Agriculture Minister Narendra Singh Tomar and his Australian counterpart David Littleproud met virtually on June 1st according to an official.

Agriculture Minister Narendra Singh Tomar (File Photo)

New Delhi: India and Australia are strengthening trade ties by allowing greater access to each other's markets and technologies, as the two countries – which have had disagreements in the past – appear to be getting closer in the face of Australia's escalating trade disruptions with China.

According to India's farm ministry, agriculture minister Narendra Singh Tomar and his Australian counterpart David Littleproud held a virtual meeting on June 1 to discuss key issues.

Australia has granted market access for the export of Indian pomegranates, while a joint plan will be worked out for access to Indian mangoes and pomegranates, officials said. The Australian minister also guaranteed access to items, such as okra and pomegranate arils. Australia is looking for a way to sell barley, which is a major export. 

The new trade developments follow the Comprehensive Strategic Partnership announced by India and Australia's prime ministers during their summit on June 4, 2020.

Analysts say that, as a result of China's recent tariff increase, Australia is considering a variety of trade agreements with India.

China has targeted Australian barley farmers with high tariffs, sparking a trade war that has spread to other Australian exports to China, including coal and wine.

“India has prohibited weed seeds, including ryegrass and wild radish, which can be found in barley. This was a barrier,” said Abhishek Agarwala of Comtrade, a commodities trading firm. India is especially looking to Australia for better farm-to-fork supply-chain technologies, he stated.

On March 5, A newspaper, called The Australian, reported that India was “moving to fill the Chinese vacuum for resources and wine, as a free-trade agreement between Canberra and New Delhi gains momentum”.

India also wants more access to Australian coal, rare earth minerals, copper, steel, aluminum, cobalt, and nickel. The Indian side has designated the National Institute of Agricultural Marketing as the nodal organisation for agricultural collaboration. It is also promoting Australian expertise in post-harvest management in order to improve rural grain storage and modernise supply chains.