Newly negotiated citrus export conditions to India a significant development
Newly approved export conditions for citrus to India have been established, after the Asian country approved the inclusion of additional treatment options for fresh citrus fruit from South Africa.
The improved export conditions are a significant development for the industry and come after nearly a decade of negotiations, industry organisation the Citrus Growers’ Association of Southern Africa (CGA) says.
South Africa already exports citrus to India with various treatments for fruit flies.
The additional fruit fly cold treatment options that have now been approved will improve the quality of the fruit in the market and add important logistical flexibility, it notes.
“This is good news and also indicates how advanced technology enables our farmers to push barriers so that other countries can enjoy our high-quality produce,” says Agriculture Minister Willie Aucamp.
India is one of the world's largest citrus producers, with consumers already familiar with the product category.
South Africa's counter-seasonal production provides an opportunity to complement domestic supply, particularly as the middle class expands, health-conscious consumption grows and demand for mandarin-type citrus increases, the CGA says.
The Department of Agriculture and research and technical services organisation Citrus Research International held technical engagements with Indian authorities, which made the new treatment options possible.
“This demonstrates the importance of sustained public-private partnership in improving technical conditions for accessing markets,” says CGA CEO Dr Boitshoko Ntshabele.
India, which has a population of about 1.47-billion and is one of the world's largest and fastest-growing economies, represents significant potential for South African citrus.
India’s share of exports from South Africa is very small and thus presents an exceptional opportunity for growth, he says.
Attention must now shift towards improving the commercial conditions under which South African citrus enters the Indian market.
Most Favoured Nation tariffs of about 25% to 30% continue to place South African citrus at a disadvantage compared with Southern Hemisphere competitors benefiting from preferential tariff arrangements, he notes.
“We look forward to working with the Department of Trade, Industry and Competition on the critical task of addressing these tariff barriers and improving the competitiveness of South African citrus in the Indian market going forward,” Ntshabele says.
With positive developments in the Southern African Customs Union–India Preferential Trade Agreement process, continued momentum towards improved preferential access will help unlock India's significant market potential and support the long-term sustainability and diversification of the South African citrus industry.
The CGA sees combining improved phytosanitary market access with more competitive tariff conditions as being key to growing South Africa's presence in India and supporting the long-term sustainability, growth and diversification of the South African citrus industry, he says.
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