Indian and Australian government agreed to resume the trade of Australian milk products for the first time since the suspension of imports in 2003. The trade for milk products like milk powder and lactose was suspended after the Indian government changed its requirements for importing goods in late 2003.
According to the Federal Government, the figure is expected to grow once trade recommences in the near future. Simon Crean, trade minister, said that industry could also expect to gradually seek a share of other Indian dairy markets, such as cheese which is currently worth $4 million and growing at 100% per annum.
"India's changing demographics, particularly its growing middleclass and urbanisation is creating real potential for the trade growth and Australia is well placed to provide high-value dairy products," Crean said in a statement while commenting on the bilateral agreement.
The Indian government has approved a new system for the health certification of Australian milk products developed by the Australian Quarantine Inspection Service (AQIS) which will also help both the countries to trade standard and quality milk products. Crean added, "The growing agricultural relationship between Australia and India has led to the recommence of the trade, and may further benefit ongoing cooperation on mutual trade issues."
Tony Burke, agriculture minister, said, "Australian dairy producers were under pressure from factors including global input prices and the falling farm gate price. This will be a great opportunity for the industry at a time when Australian dairy producers have been going through a difficult period.
Source : www.fnbnews.com