Closer trade ties to India are paying off for farm exporters

The big winners have been sheep meat, seafood, broad beans, citrus and almonds.

Agricultural exports to India are 50 per cent higher since the trade agreement came into force on December 29 in 2022, the government has revealed.

From January 1, the India trade will be even more competitive, with more tariff cuts on Australian products such as seafood, cherries, sandalwood and wine.

Trade deals have been signed with India, the UK in the past year although the much hoped for access to European Union markets failed at the final hurdle.

Many of Australia's agricultural exporters are making the trip to India, one of the world's fastest growing economies, to take advantage of the free trade agreement.

Among them has been the wool industry which already counts India as our second biggest buyer behind China.

An Australian-Indian wool roundtable in Melbourne in late November and a visit by WoolProducers CEO Jo Hall to India are among the latest engagements, with more on the cards.

A surge in demand for both raw wool and woollen products saw Australian wool exports increase by 26pc in the 2022-2023 financial year to 21.6 million kilograms, the highest since 2016.

India produces approximately 40 million kilograms of wool annually and imports about 30 million kilograms in total.

Tariffs have been eliminated on sheep meat, wool, barley and oats, while taxes have been halved on lentil, almond, orange, mandarin and pear quotas.

A 300,000 bale duty-free quota has been opened up to the cotton industry, while tariffs will be phased out over several years for macadamia nuts, avocados, onions, cherries, blueberries, raspberries and blackberries, some oil seeds and oils, and certain peas and beans.

Trade Minister Don Farrell said most of Australia's industrial exports to India are up by around 30pc with pharmaceuticals, wood and paper and cochlear implants leading the charge.

He said from January to September 2023, Australian businesses claimed lower tariffs on $15.2 billion worth of exports to India.

At the same time, Australian businesses and households have saved over $145 million in duties on goods imported from India, on items like clothing, household linen, automotive and electrical parts.

The agreement has also helped ease supply-chain stresses for Australia's manufacturing, resource and construction industries, by improving access to inputs such as tubes, pipes and off-road dump trucks.

Senator Farrell said Australia and India are now finalising a further trade agreement, an ambitious Comprehensive Economic Cooperation Agreement.

This deal would boost other areas such as digital trade.

"In the year since this agreement came into effect, we have seen enormous gains for a range of Australian exporters, including our farmers, manufacturers, and our universities," Senator Farrell said.