Company: AUSTRALIA-INDIA FRESH FOOD ALLIANCE

State: TASMANIA

Sector: AGRIBUSINESS

In April 1999, after the Indian Government first liberalised fresh food
imports, the Australian Horticultural Corporation responded quickly,
leading a delegation of 12 exporters to India, taking samples of
Australian citrus, apples and pears. Six exporters from Western Australia,
South Australia, Victoria and Tasmania formed the Australia-India Fresh
Fruit Alliance and then decided to develop a cool chain distribution
system from the port to the consumer that was beyond the capability of any
one exporter.

The Alliance continues to develop the Indian market, selling 140 tonnes
of fruit worth A$152 000 in 2000 and 460 tonnes worth A$472 000 in 2001.
The first visit, subsequent market research and assistance from Austrade
in Mumbai and the Commonwealth Government initiative, Supermarket to Asia,
provided the Alliance with contacts that later proved useful in solving
problems and facilitating market entry.

Tariffs on fresh fruit are currently high, at nearly 60 per cent,
reducing the profitability of the business. However, India's WTO
obligations require it to reduce these tariffs gradually over the next few
years, which will make the market more attractive. In the meantime the
Alliance is building the market for its brand by ensuring its product is
maintained in a cool chain right up to delivery to the retailer.

Source: Australia India Fresh Food Alliance, 2001.