Australia in deal with Pakistan on methyl bromide fumigation of grain, potential boost to exports

Australia has struck a deal which could help with exports of canola, chick peas, lentils and wheat to Pakistan. See what has turned the tables.

online artwork june 16 canola

THE Federal Government has struck a market access deal with Pakistan to allow Australian grain to be fumigated on arrival to local ports, rather than prior to being loaded on to ships for export.

Federal Agriculture Minister David Littleproud said the successful conclusion of technical negotiations between the two countries could pave the way for more Australian exports of canola, chick peas, lentils and wheat into Pakistan.

Grain Industry Market Access Forum executive manager Tony Russell said Pakistan had required high rates of fumigant being applied to grain and oilseed exports to not only keep grain pests under control but importantly, to denature the seed.

The Pakistani Government wanted to ensure seed entering the country was not sold by unscrupulous traders for planting by local farmers, increasing plant biosecurity risks for its agricultural industry.

Methyl bromide was used for fumigation of some crops but the rate Pakistan required was much higher than that applied by neighbouring countries, such as India.

Mr Russell said the new agreement meant fumigation at the high dosages would occur on arrival in Pakistan. “It adds flexibility to Australian exports of grain and oilseed,” he said. “It opens up some opportunity for Australia.”

Mr Littleproud said the deal brought Pakistan into alignment with India and Bangladesh.

“Pakistan is an important trading partner for Australia,” he said. “Australia’s agricultural exports to Pakistan grew 35 per cent year on year to $194m in 2020.”

Australia exported $102m in chick peas to Pakistan last year and should exceed that this year.

The Australian grain industry has viewed Pakistan as a handy alternative market for pulse crops to counter protectionist measures often put in place by India.

Mr Littleproud said Australia had not exported canola to Pakistan since 2016-17.

Despite that, Pakistan spent $426m on canola imports from other countries around the globe last year.

Australian Oilseeds Federation executive director Nick Goddard said Australia once had a strong trade with Pakistan about a decade ago but it had dropped off to zero in the past four years due in part to exporters earning more from other markets.

“But it is good to have this impediment removed so that it makes access to that market (Pakistan) easier,” Mr Goddard said.

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