Australia has proposed aiding India in developing climate-resilient crops and grain storage technology in exchange for India’s reduction of import duties on Australian agricultural imports, according to sources familiar with the matter.
Australian High Commissioner to India, Philip Green, emphasised the significance of reducing barriers to agricultural products.
Green stated, “We believe this can be mutually beneficial for India as our agriculture sector is eager to collaborate more closely with India to enhance its agricultural capabilities, including improving yields, developing pest and drought-resistant crops, and enhancing storage and transportation facilities.”
He added, “Australia’s exports of food and fibre can serve as inputs for Indian industries. Therefore, increased exports of cotton or wool from Australia, for instance, can contribute to India’s successes.”
While the import duty on Australian vegetables currently stands at 30 per cent, it will be phased out over seven years, with fruit import duties of 15-30 per cent to be halved over the same period.
However, opening up the agricultural sector to imports is a sensitive issue for India, given that a significant portion of its population relies on farming and related activities for their livelihoods.
A Commerce Ministry official, speaking anonymously, confirmed that while Australia has requested duty reductions on its agricultural products, India has not yet offered any such concessions. The official stated, “We are carefully considering how to offer the best deal without adversely affecting our farming community.”
Initiated in May 2011, talks between India and Australia for a Comprehensive Economic Cooperation Agreement (CECA) led to an interim agreement, the Economic Cooperation and Trade Agreement (ECTA), coming into effect on December 29, 2022. The CECA aims to further the outcomes of the ECTA.
During trade discussions with the European Free Trade Association (EFTA), India rejected demands for market access to cheese and dairy products from the four-nation bloc.
