Australia & India: India opens doors for Australian malting barley
Australian exporters could be sending malting barley to India as soon as April after the Indian government removed a critical phytosanitary requirement that acted as a roadblock to sales to the subcontinental nation, the North Queensland Register reported on February 10.
It paves the way for a market industry insiders suggest could easily see Australian trade to Indian in excess of 500,000 tonnes in the near term, rising to up to a million tonnes with time to forge closer relationships.
This means a potential windfall in the hundreds of millions of dollars for the Australian barley industry based on current pricing.
Grain Producers Australia (GPA) chairman Andrew Weidemann said the trade would hit the ground running in executing sales.
"We have been in talks with one business who has said they have negotiations in place to sell 60,000 tonnes of malting barley to India, contingent on the right protocols being in place," Mr Weidemann said.
The sales will be made possible due to alterations regarding Indian import protocols, in specific regarding the use of phosphine, Australia's major means of controlling pests in stored grain.
Previously it required the grain be treated with methyl bromide, another grain treatment product, which meant would-be exporters could not access the Indian market.
The new changes will mean barley can be fumigated with phosphine in accordance with Australian standards.
While the Indian beer market is nowhere near as developed as China, which was Australia's major international customer for malt barley until a Chinese government instigated review into alleged dumping of barley into China by Australian exporters, it is growing at a quick rate.
"It is fantastic to diversify into new markets, China is always going to be important to us but India presents some fantastic opportunities," Mr Weidemann said.
The Indian government has officially gazetted the alterations to its requirements.
Grains Industry Market Access Forum (GIMAF) executive manager Tony Russell said the Indian government's decision was a triumph for a united industry approach.
"There has been a lot of hard work going into this, from the guys at the Department of Agriculture to our agricultural counsellor in New Delhi Nora Galway who worked tirelessly to get it through," Mr Russell said.
"The team at the Australian Export Grain Innovation Centre (AEGIC) have also been fantastic in raising the profile of Aussie barley in India and helping us develop an understanding of the Indian malt sector.'
Mr Weidemann also singled out agriculture minister David Littleproud for praise.
"In his first stint in the role he really got things moving on this front after we demonstrated the trade did have a market in India if the protocols were altered."
Mr Weidemann said the immediate market would be for malt barley but down the track demand for feed barley could develop.
"The Indian feed industry is probably still relatively small but with the scope of growth in all sectors there you would expect it to grow."
Mr Russell said there were still strict phytosanitary requirements that must be adhered to by exporters, in particular in regards to weed seeds.
"They will be very stringent on weed seeds and have concerns about wild radish and Italian ryegrass.
"It is something that can be managed through the supply chain, however it may initially mean that exports come out of regions that do not have big problems with these weeds."
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