India shows promise as market for Australian barley

India has been flagged as a market opportunity for Australian barley. Here’s why.

Barley potential: India had finalised changes to import conditions on phosphine fumigation of malting barley, better suiting Australian practices, says Austrade.

INDIA could offer a new market opportunity for Australian malting barley, following changes to import conditions.

A recent Austrade webinar discussing opportunities and challenges with exporting grains to India found Australia could capture a large portion of the nation’s malt market which is estimated at 500,000 tonnes a year.

Austrade says India had finalised changes to import conditions on phosphine fumigation of malting barley, better suiting Australian practices. This means Australian exports of malting barley to India could offer “savings and flexibility” for the industry.

Currently, India imports barley from Argentina and France with potential for Black Sea trade, however, Austrade said Indian traders preferred Australia’s high-quality grain.

But negotiating the right price will remain “a key factor” Austrade said, as India was a price-sensitive market with buyers there looking for price parity between imported barley and domestic supply.

Austrade said this allowed Australia an “export window” during November to February when Indian domestic prices for barley fetched about $400 a tonne, with the best times for export occurring in first quarter of the calendar year.

Challenges Australian exporters face, however, include the requirement of grain for consumption to be free from weed seeds species such as wild radish and ryegrass.

India also has “nil tolerance” for ergot fungus.

Meanwhile, during a Rural Press Club of Victoria webinar last week, federal Agriculture Minister David Littleproud said the Federal Government had been working “continually” with India to open up trade opportunities.

Mr Littleproud said in the wake of China’s hefty tariffs on Australian barley, exporters should “spread out” their risk.

“What we will take out of international trade and recent events here in Australia is that exporters, in simple business principles, should not have market concentration,” he said.

Mr Littleproud added that a trade agreement with the country was also trying to be achieved.

“A formal trade agreement with India is the gold standard which we are trying to achieve,” he said.

“We are trying to work through that, but having a close relationship is part of getting a free trade agreement.

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“We’ve got to understand their domestic political situation when it comes to agriculture and we’ve got to get them to understand, that in essence, in us producing enough food for 75 million people, we will not flood the Indian market.

“Australian producers will not be able to do that when there’s 1.3 billion of them over there.”