India New Economy Old Economy

Company: AUSTRALIAN WHEAT BOARD
State: VICTORIA
Sector: AGRIBUSINESS

India is a complex and diversified wheat market; over the years it has been both an importer and an exporter. In 1999, India applied a new 50 per cent tariff to wheat imports and in 2000, was exporting to the Middle East and South East Asian markets, both traditional markets for Australian wheat. While Australia and India may compete for market share in these regions, the different quality of the two products implies they do not compete directly. Indian wheat must be blended with wheat of other origins to meet customer quality specifications.

Irrespective of India’s wheat export program, the relationship between the Australian Wheat Board Limited, AWB and Indian Government agencies and suppliers remains strong and ongoing. AWB finds it is critically important for it to monitor India’s rapidly changing agricultural policies and maintain relationships with buyers and government institutions. India’s liberalising economy also offers many opportunities outside traditional wheat importing and exporting for both the AWB and companies based in India. AWB’s approach to India is a long term one with a commitment to maintaining strong relations with key customers both in the private and public sectors.

Source: AWB Limited, 2001.