THE GRAINS industry is warning there could be missed opportunities if the details within the interim free trade agreement (FTA) with India announced over the weekend are implemented permanently.
While pleased with a number of modest wins within the FTA, Grain Growers chairman Brett Hosking said overall the agreement was 'a little frustrating' for the Australian grains sector.
In particular, he said he would have liked to have seen more in terms of pulse trade reform.
"The details of the interim deal are a little frustrating given the enormous potential for exports, particularly our chickpeas into this market," Mr Hosking said.
"We understand there are 180 million farmers in India and the Indian government want to look after them but Indian agriculture, like Australia, is highly dependent on the weather and there will be years where they are looking to bring in product and we want our chickpea producers with the best possible opportunity to supply them."
Mr Hosking said he was hopeful negotiations between trade officials from both countries could thrash out a deal with mutually beneficial outcomes within the grains space.
"Australia is counterseasonal to India so we feel there could be some really solid opportunities for both countries in the years where Indian production is down and they need to bring grain in."
He said the interim deal offered some opportunities in some grain sectors, such as lentils, faba beans and canola oil.
"The import tariff on lentils has been halved, at present that does not matter too much given we're at zero tariffs anyway but if tariffs are implemented across exporting nations that would give us an advantage compared to other exporters."
"The problem is countries like Canada, our major competitor in the lentil export market, are also negotiating FTAs and they will look to have a similar arrangement within their own deal."
Grain Producers Australia chairman Barry Large applauded the work from Aussie officials to get the deal done and said he hoped there would be further breakthroughs in talks, especially on the chickpea front.
"We acknowledge these initial outcomes for the Australian grains industry in the deal with Minister Tehan's leadership and the Australian Government's work pursuing these sensitive trade negotiations," Mr Large said.
"Whilst we understand chickpeas present some political sensitivities in these negotiations, and may be seen as a stumbling block in seeking enhanced market access for all of Australian agriculture, we remain optimistic that these barriers can be resolved."
Mr Hosking said Grain Growers had identified potential benefits in the future in faba beans, canola oil and soybeans but said at present it was very much business as usual for export businesses that send grain to the subcontinental giant.
Along with chickpeas Grain Growers nominated wheat as another commodity they would like to see more progress.
India this season will be a substantial exporter of wheat but in other years with less favourable weather it can import solid volumes of the staple grain.
There was also no news on barley, with India and its growing market for beer previously identified as a major growth opportunity for Australian malt barley producers.
Mr Hosking said much of the market access work on that front was separate to the trade deal.
"We have to work through a number of non-tariff measures there such as acceptable grain storage treatments and weed seeds."
"At present India wants zero tolerance of wild radish seed in barley exports which is very difficult to promise."
"It shows that while trade deals are important there is other work that has to happen to allow trade to operate and operate smoothly."
Start the day with all the big news in agriculture! Sign up below to receive our daily Farmonline newsletter.