Country Reports - Australia & New Zealand

Largest Australian delegation attending India food industry fair

March 2024

Country Reports - Australia & New Zealand

Largest Australian delegation attending India food industry fair

March 2024

Twenty-three Australian companies and two industry groups are participating in the premier trade fair of the Indian food industry in Delhi, as announced by a senior official from the Australian embassy on Thursday.

Australian seafood, lamb, sheep, food ingredients, and commodities will be showcased at the Aahar India food and hospitality fair, spanning five days. Organized by the India Trade Promotion Organisation and supported by the Ministry of Food Processing Industries and the Agriculture and Processed Food Products Export Development Authority, this marks the 38th edition of the event.

According to John Southwell, the trade and investment commissioner at the Australia Trade and Investment Commission, Australian food brands are targeting a market of 25-30 million people in India's Tier-I and Tier-II cities. Southwell highlighted the familiarity of Indian consumers with these brands, especially among Indians who have traveled to Australia or have been exposed to popular television shows like Masterchef Australia. With approximately one million Indian-origin Australians in a population of 27 million, there exists a significant demand for Aussie food products fueled by interactions between these communities.

Among the Australian brands participating in Aahar India 2024 are Ryan Meat Company, Summerfruit Australia, Frosty Boy ice cream flavors, Source Wellness Drinks, and Supercharged Food. These companies are eager to establish business-to-business partnerships in India.

The India-Australia Economic Cooperation and Trade Agreement (ECTA), which came into effect in December 2022, has positively impacted trade flows in food and beverages between the two countries. Excluding coal, Australian exports to India have surged by 35 percent in the first year post-ECTA signing. Notable increases have been observed in exports of Australian lamb, seafood, and oranges to India.

Under the provisions of ECTA, India has reduced tariffs on imported wine for the first time, leading to the participation of 24 Australian wineries in events like ProWine Mumbai last year.

Additionally, India has waived duties on imported Australian lentils until March 31, 2025, although imports of this food item have declined due to the seasonal nature of the trade, influenced by weather conditions. Southwell emphasized the complementary nature of trade between the two countries, with Australia able to provide imports into Indian food processing and meet consumer demand due to counter-seasonal production cycles.

Processed foods constitute India's largest food and agriculture exports to Australia, with notable increases witnessed under ECTA. Exports of rice, cereals, bread, ice cream, biscuits, and frozen vegetables have all experienced significant growth, reflecting the strengthening economic ties between India and Australia.

business-standard.com