Barley market: India emerges as a market opportunity for Australian malting barley

There is a “healthy and growing thirst” for Australian malting barley in the Indian malting and brewing industry, according to the Australian Export Grains Innovation Centre.

Turnaround: Barley from crops around Australia that could have gone to China could potentially be exported to India. Picture: ZOE PHILLIPS

INDIA is proving to be an attractive market for malting barley, and the Australian industry is working hard to capture a strong share of it.

About 30 members of the Indian brewing and malting industry were involved in a recent online seminar, hosted by Australian Export Grains Innovation Centre and Austrade, to discuss the quality, safety and reliability of Australian malting barley.

AEGIC barley markets manager Mary Raynes said by 2030, the Indian malting barley market was likely to be between 450,000 tonnes and 650,000 tonnes.

While the country has not been a market for Australian barley for 10 years due to technical phytosanitary restriction, AEGIC said the Australian grains industry was working together with both the Australian and Indian Governments to allow market access.

Ms Raynes said there was a “healthy and growing thirst” for Australian malting barley in the Indian malting and brewing industry.

“Our visits to India during 2019 were very valuable, firstly to engage with Indian malting and brewing industry, and secondly to increase the Australian industry’s understanding of what India wants from Australian malting barley,” she said.

“AEGIC will keep working in India to capitalise on the groundwork we’ve already laid and ensure Australia can fully capture this opportunity.”

Grains Industry Market Access Forum executive manager Tony Russell, who hosted the questions and answers session during the seminar, said, given China’s imposition in May of an 80 per cent tariff on Australia barley there was an opportunity for malting barley to be exported to India.

“Currently, India imports from Argentina and other European sources, while also growing some of their supply domestically but there are some issues with consistency of quality,” Mr Russell said.

He labelled the seminar as a success, with those taking part wanting to expand their understanding of Australian malting barley.

“Looking 10 years ahead India is a good market ­opportunity,” Mr Russell said.

However, he said the coronavirus pandemic had dampened consumption in India.

“But as India’s economy grows, this will result in more demand,” Mr Russell said.

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