Australia’s Free Trade Agreement with India Expected to Bring Substantial Returns for Producers Amid Avocado Surplus

Australia’s affinity for avocados, which at one point was famously critiqued as the reason young people were unable to afford homes, is now sparking interest across international borders.

From Melbourne to Mumbai, the demand for this creamy green fruit is burgeoning in India, presenting a lucrative million-dollar opportunity for Australian farmers and the broader economy.

Growing Avocado Appetite in India

The surge in avocado demand in India is noteworthy.

Mumbai cafe owner Ritu Pagarani shared insights into the popularity of the fruit among her customers.

“They love it, all of them. Since the beginning, nearly every customer has opted for avocado toast,” Ms.

Pagarani noted. The cafe’s menu now includes avocado toast, avocado salad, and even an avocado sandwich, highlighting the fruit’s versatility and growing appeal.

In India, avocados are marketed as a superfood and a premium product catering to the nation’s burgeoning middle class.

Grocery stores in metropolitan areas are selling avocados for as much as $6 each, while street vendors offer the popular Australian brunch item for around $4.50.

This pricing creates an accessible entry point for Indian consumers to try avocados, further fueling demand.

Australia Enters the Indian Avocado Market

Although India has been importing avocados from New Zealand, Tanzania, Chile, Peru, and Kenya, Australia is now looking to establish a competitive foothold in this market.

Australia’s entry into the Indian market is supported by its high-quality produce, lower shipping costs, and a pivotal free trade agreement with India.

Significantly, by 2028, the 30% tariff imposed on Australian fruit will be phased out, making Australian avocados more economically viable.

Nutritionist Kevita Devgan pointed out that this trade agreement is timely given India’s increasing focus on healthy eating post-COVID-19.

“India’s waiting literally for a product like this,” Ms. Devgan explained. She emphasized that avocados, which are rich in healthy fats, are a perfect addition to the Indian diet.

Changing Perceptions Around Avocados

It’s worth noting that avocados are still relatively new to the Indian palate.

Nine years ago, Ms. Devgan was sent an avocado to try and, unfamiliar with the fruit, she made cold soup out of it.

However, she acknowledged that receptiveness to this exotic fruit is growing, with avocados being increasingly served in health restaurants and salad bars.

The future holds potential for avocados to be used as a dairy alternative in traditional Indian foods, further integrating this nutrient-rich fruit into the Indian diet.

More than Curry: Avocado’s Increasing Popularity

The rising consumption of avocados in India challenges traditional perceptions of Indian food consumption.

Companies like California Burritos, a Mexican chain founded by an American in India in 2012, are significantly contributing to this trend.

According to Regional Manager Rajneesh Ranjan, the growing demand for guacamole prompted the company’s founder to import 500 Hass avocado trees.

These trees are now contracted to local farmers, ensuring a steady supply of avocados.

“A lot of people try it for the first time and say, ‘wow, it tastes very nice,’ which then makes avocado a habitual part of their meals,” Mr. Ranjan observed. It’s an intriguing shift, considering Australia is the third-largest avocado consumer globally, with an average consumption of 4.5 kilograms per person annually.

The involvement of cricket legend Brett Lee in an Australian avocado marketing campaign aims to further boost avocado consumption in India.

Economic Implications for Australian Producers

The Australian avocado industry stands to benefit immensely from this expanding market.

Last fiscal year, Australia produced over 10,500 tonnes of avocados, valued at more than $58 million.

However, producers have been grappling with an oversupply, leading to thousands of avocados being discarded. Exporting to India is seen as a potentially transformative opportunity for Australian avocado farmers.

Queensland avocado grower Daryl Boardman highlighted the need for additional markets to accommodate the increasing volume of avocados grown in Australia.

Last year, 10 trial deliveries of Australian Hass avocados were sent to India.

These deliveries were successful in proving the quality of Australian avocados and meeting India’s stringent biosecurity and food import requirements.

With these protocols now finalized and exporting growers accredited, commercial shipments to India are well underway.

Future Prospects: India as a Major Importer

Avocado exporter Antony Allen suggested that India could surpass Hong Kong to become Australia’s largest avocado importer within three years.

“It makes a big leap in terms of volume, in terms of the opportunity forward,” Mr. Allen said.

His optimism is shared by Indian avocado importer Avinash Bansode, who referred to avocados as “green gold.” He envisioned a future where every Indian consuming even one avocado a day would keep producers busy year-round.

“Australian avocados will penetrate drastically into the Indian market,” Mr. Bansode predicted.

Role of Austrade in Facilitating Trade

Austrade commissioner John Southwell has played a crucial role in facilitating the entry of Australian avocados and other commodities into the Indian market under the free trade deal.

Conclusion: Harvesting Success

In summary, the free trade agreement between Australia and India is poised to bring substantial returns for both Australian avocado producers and the broader economy.

The growing appetite for avocados in India, combined with the phased-out tariff, presents a golden opportunity for Australian farmers to address their surplus while tapping into a lucrative market.

This trade deal not only underscores the importance of international economic partnerships but also highlights the evolving food preferences in India.

As commercial shipments continue and consumer familiarity with avocados increases, the full potential of this trade relationship will undoubtedly unfold, benefiting both countries in numerous ways.