Insight – New Access to India for Hass Avocados from Australia

AI Basics




April 5, 2023




Australia’s Hass Avocado has obtained provisional access to the Indian market. The new access was granted after Australia showed that high-quality avocados could meet India’s biosecurity and food import requirements.

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

The new access was announced in a joint statement by the Prime Ministers of Australia and India on 11 March 2023.

The move comes after Australia secured tariff reductions on a range of horticultural products through the Australia-India Comprehensive Economic Partnership Agreement (AI-ECTA) (see Table 1). Under AI-ECTA, Australian avocados enjoy more favorable tariff rates than India’s major avocado suppliers (New Zealand, EU and Peru).

Impact on Australian agricultural exporters

The Australian Government is working with the avocado industry to facilitate 10 release trials.

Avocado orchards and packhouses looking to export to India, if granted full access, Export Administration Act 2020.

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





Table 1 – Key AI-ECTAs for Australian Horticultural Exporters













product

Before AI-ECTA

AI-ECTA results

almonds (shelled)

Rs35/kg

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

almonds (shelled)

Rs100/kg

TRQ 34,000 tons/year, 50% tariff reduction

avocado, cherry, berry, olive

15-30%

7 year phase out

Cashews (shelled), Hazelnuts (shelled/shelled), Chestnuts (shelled/shelled), Pistachios (shelled), Macadamia (shelled/shelled)

10-30%

7 year phase out

garlic and peas

30%/100%

7-year gradual reduction to 50% tariff reduction

Onion, shallot, green onion, cabbage, lettuce, asparagus, artichoke, eggplant, spinach, celery, cucumber

30%

7 year phase out

orange and mandarin

30%

TRQ 13,700 tons/year, 50% tariff reduction

Pear

30%

TRQ 3,700 tons/year, 50% tariff reduction

Strawberry, fig, apricot, kiwifruit, lychee

15-30%

7-year gradual reduction to 50% tariff reduction

  1. Tariff quota




A snapshot of the Indian avocado market

  • India’s avocado import market is small but still growing. 2021-22[1]India import
    Avocados increased by A$4.8 million, up from A$2.4 million in 2020-21 and A$1.6 million in 2019-20 (Figure 1).
  • Imported avocados are a luxury product in India. They are most likely to enter the hospitality and foodservice sector.
  • India imports avocados from New Zealand (41%), EU (39%) and Peru (17%). All of these exporters are subject to India’s 30% Most Favored Nation (MFN) import duty. Under AI-ECTA, tariffs on Australian avocados will be reduced, gradually dropping to 0% (Figure 2).
  • The average unit import price of New Zealand avocados to India in 2021-22 was A$4.81/kg. This is lower than the average Australian avocado import price for 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 from 2016-17 to 2021-22

Indian Avocado - Figure1

Figure 2 – India’s Avocado Import Tariff

Indian Avocado - Figure2

An overview of the Australian avocado industry

  • In 2022, avocado was Australia’s 7th largest fruit crop with a value of A$363.8 million (HIAL 2022).
  • Most Australian avocados are produced in Queensland (55%), Western Australia (27%) and New South Wales (11%).
  • Australian avocado production increased from 34,000 tonnes to 122,000 tonnes (+151%) from 2010-11 to 2021-22 (Figure 3). Production is expected to continue to increase as the new plantings mature.
  • Increased production in Queensland, in particular, pushed avocado exports to reach A$55.1 million in 2022.
  • Hong Kong, Singapore and Malaysia are Australia’s major avocado markets. Producers are trying to establish new markets, including Japan and now India.
  • Australia is a relatively modest avocado exporter. Mexico (54%) and Peru (16%) hold the largest share of the global avocado market (Source: UN Comtrade 2023).

Figure 3 – Australian avocado production

Indian Avocado - Figure3

means

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

Austrade has detailed information on the Indian economy and doing business in India.

The Manual of Importing Country Requirements contains information on India’s import requirements for agricultural exporters.

The Australian government’s network of agricultural counselors provided the information for this article. For more information about the Agricultural Counselor Network, including contact information, please visit the Ministry of Agriculture, Forestry and Fisheries website.

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