Ag News

Supporting efforts to improve understanding of Indian market

  • By: Farm Tender "Prime"
  • Sep 05, 2017

National grain farmer representative body, GrainGrowers, will work to enhance export opportunities for Australia’s quality grains, pulses and oilseeds and improve business relationships with major customers through consultations with high-ranking government officials and customers as part of Australia Business Week in India this week.

GrainGrowers’ Trade and Economics Manager Luke Mathews is currently in India as part of the Austrade delegation, along with Australian exporters, industry leaders and key Australian Government officials.

Supporting efforts to improve understanding of Indian market dynamics, GrainGrowers today released a report on the growing importance of the Indian market for the Australian grains industry.

 “India’s growing import demand for grains, oilseeds and pulses will no doubt benefit the Australian industry for many years to come,” said Mr Mathews.

“Total Indian grain consumption has averaged 232.1 million tonnes over the past five years, and has grown at an average rate of 3.8 million tonnes per annum over the past decade.

“India has remained largely self-sufficient in grain production in the past five years with production averaging 240.5 million tonnes per year. However, increasing rates of domestic demand growth driven by increasing population and changing diets – combined with slowing rates of production growth – will result in India emerging as a key import market for grains, oilseeds and pulses in the future.

“The development of a more intensive livestock industry in coming years is also expected to increase India’s need for imports.”

Turning to pulses, Mr Mathews said that Indian import demand had helped shape both global and Australian markets.

“India is responsible for roughly 25% of global pulse production, but also 30% of global pulse trade demand with imports of more than 6 million tonnes in 2016. India takes around 80% of Australian chickpea exports, and has largely been responsible for the recent growth in the Australian pulse industry,” he said.

Mr Mathews said India also currently imports around 14 million tonnes of vegetable oils, although the imports are currently dominated by palm oil.

“Future growth in protein meal demand will raise the likelihood of additional imports of ‘whole’ oilseeds, such as Australian canola, in order to satisfy b...
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