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.