5 April 2023

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New access for Australian Hass avocados to India

Australian Hass avocados have received provisional access to the Indian market. 


New access was granted after Australia demonstrated that its high-quality avocados could meet India’s biosecurity and food import requirements.

10 trial shipments will be sent to India during the provisional access period. Full access will be granted if these shipments meet India’s import requirements.

New access was announced in a Joint Statement by the Australian Prime Minister and the Prime Minister of India on 11 March 2023.

The move comes after Australia secured reduced tariffs on a range of horticulture products through the Australia-India Economic Comprehensive Economic Partnership Agreement (AI-ECTA) (see Table 1). Under AI-ECTA, Australian avocados have a tariff rate advantage over India’s key avocado suppliers (New Zealand, the EU and Peru).

Implications for Australian agricultural exporters

The Australian Government is working with the avocado industry to facilitate the ten-shipment trial.

If full access is granted, avocado orchards and packhouses seeking to export to India will be required to become accredited properties under the Export Control Act 2020.

Interested exporters should contact Avocadoes Australia and continue to monitor for further Australian Government announcements.

Table 1: Key AI-ECTA for Australian horticultural exporters

 

Product

Pre-AI-ECTA

AI-ECTA outcome

Almonds (in shell)

Rs35/kg

TRQ 34,000a tonnes/year with 50% tariff reduction

Almonds (shelled)

Rs100/kg

TRQ 34,000 tonnes/year with 50% tariff reduction

Avocados, cherries, berries and olives

15-30%

7-year phasing to elimination

Cashew (in shell), hazelnuts (shelled/in shell), chestnuts (shelled/in shell), pistachios (shelled) and macadamias (shelled/in shell)

10-30%

7-year phasing to elimination

Garlic/peas

30%/100%

7-year phasing to 50% tariff reduction

Onions, shallots, leeks, cabbages, lettuce, asparagus, artichokes, aubergines, spinach, celery and cucumbers

30%

7-year phasing to elimination

Oranges and mandarins

30%

TRQ 13,700 tonnes/year with 50% tariff reduction

Pears

30%

TRQ 3,700 tonnes/year with 50% tariff reduction

Strawberries, figs, apricots, kiwi fruit, lychees

15-30%

7-year phasing to 50% tariff reduction

Snapshot of the Indian avocado market

  • India has a small but growing avocado import market. In 2021-22[1], India imported
    A$4.8 million of avocados, up from A$2.4 million in 2020-21 and A$1.6 million in 2019-20 (Figure 1).
  • Imported avocados are a high-end product in India. They are most likely to enter the hospitality and food service sector.
  • India imports avocados from New Zealand (41%), the EU (39%) and Peru (17%). All of these exporters are subject to India’s 30% Most Favoured Nation (MFN) import tariff. Under AI-ECTA, tariffs on Australian avocados have been reduced and will gradually decline to 0% (Figure 2).
  • The average import unit price of New Zealand avocados in India in 2021-22 was A$4.81/kg. This is lower than the average unit import price of Australian avocados in Hong Kong (A$5.57kg) and Malaysia (A$5.54/kg) but similar to Singapore (A$4.84/kg).
  • India does not produce avocados on a commercial scale.

Figure 1 - Indian avocado imports 2016-17 to 2021-22

Stacked bar chart showing increase in Indian avocado imports by year

Figure 2 - Indian avocado import tariffs

Bar chart showing decrease in Indian avocado import tariffs by year

Australian avocado industry overview

  • In 2022, avocados were Australia’s seventh largest fruit crop, valued at A$363.8 million (HIAL 2022).
  • Most Australian avocados are produced in Queensland (55%), Western Australia (27%) and New South Wales (11%)
  • Between 2010–11 and 2021-22, Australian avocado production increased from 34,000 tonnes to 122,000 tonnes (+151%) (Figure 3). Production is expected to continue increasing as new plantings mature.
  • Increased production, particularly in Queensland, led to a record A$55.1 million of avocado exports in 2022.
  • Hong Kong, Singapore and Malaysia are Australia’s major avocado markets. Producers are seeking to establish new markets, including in Japan and now India.
  • Australia is a relatively modest avocado exporter. Mexico (54%) and Peru (16%) have the major share of global avocado markets (Source: UN Comtrade 2023).

Figure 3 - Australian avocado production

Line graph showing increase in Australian avocado production by year

Resources

More information about the benefits of AI-ECTA, including key tariff reductions, is available on the Department of Foreign Affairs and Trade website.

The Manual of Importing Country Requirements has information about Indian import requirements for agricultural exporters.

The Australian Government’s network of Agriculture Counsellors provided information for this article. More information about the Agriculture Counsellor network, including contact details, is available on the Department of Agriculture, Fisheries and Forestry website.


Trade and investment opportunities with India

The Australia-India Business Exchange (AIBX) helps boost trade and investment between India and Australia.