India and Australia Strengthen Organic Trade with Landmark Recognition Pact

India and Australia have taken a major step to enhance bilateral trade in organic products by signing a Mutual Recognition Arrangement (MRA). The agreement, inked at Vanijya Bhavan in New Delhi, seeks to simplify certification processes and open new avenues for exporters, while strengthening economic and strategic ties between the two nations.

The arrangement reflects growing trust and confidence in each other’s organic standards and certification systems | LiveMint

Mutual Recognition of Organic Standards

The newly signed MRA enables India and Australia to accept each other’s organic certification systems. This mutual recognition eliminates the need for duplicate inspections and certification procedures, streamlining trade processes for both countries. The agreement covers a wide range of products, including unprocessed plant goods, processed foods, and wine, though certain items like seaweed and greenhouse crops are excluded.

Commerce Secretary Sunil Barthwal highlighted that India’s National Programme for Organic Production (NPOP) ensures transparency and credibility in the country’s organic ecosystem. Organic products often command 30–40% higher prices, offering significant economic benefits to farmers. The pact emphasizes maintaining the integrity of organic certification across the supply chain, including proper labeling and strict separation of organic and non-organic produce.

Expanding Trade and Market Access

The MRA is a key component of the India–Australia Economic Cooperation and Trade Arrangement (ECTA), reflecting a shared commitment to sustainable agricultural practices. For Indian exporters, this agreement simplifies compliance and provides smoother access to the high-value Australian market. Australian consumers will also benefit from a wider selection of certified organic products, ranging from cereals, tea, and spices to beverages and wine.

In 2024–25, India’s organic exports to Australia totaled around $9 million, covering over 2,700 metric tonnes of products including psyllium husk, coconut milk, and rice. The new pact is expected to boost these figures by reducing trade barriers and increasing the efficiency of certification processes.

Implications for the Organic Sector

India currently ranks second globally in terms of organic agricultural land and leads the world in the number of organic producers. In FY24, India produced approximately 3.6 million tonnes of certified organic products, spanning a wide array of commodities such as oilseeds, cereals, pulses, fruits, spices, and processed foods. States like Maharashtra, Madhya Pradesh, Rajasthan, Karnataka, and Gujarat have emerged as top producers.

Australia, which already boasts the world’s largest area of organic farmland at 53 million hectares, presents a lucrative opportunity for Indian organic exporters. The pact is expected to foster closer collaboration between stakeholders in both countries and support sustainable agricultural practices while enhancing trade volumes.

The MGMM Outlook

The signing of the Mutual Recognition Arrangement (MRA) between India and Australia is a significant development for the organic trade sector, reflecting a pragmatic approach to strengthening bilateral economic ties. By recognizing each other’s organic certification systems, both nations can bypass duplicative inspections, streamline export procedures, and ensure transparency in the organic supply chain. This step not only facilitates smoother market access for Indian exporters into Australia but also provides Australian consumers with a wider selection of certified organic products. With India already ranking second globally in organic agricultural land and leading in the number of organic producers, the agreement leverages India’s production capabilities to meet the high-value demand of Australian markets, while ensuring compliance with strict certification standards.

From a broader perspective, the MRA aligns with the objectives of the India–Australia Economic Cooperation and Trade Arrangement (ECTA), promoting sustainable agricultural practices and economic growth. For Indian farmers, this pact offers tangible benefits in the form of higher product value and improved export opportunities. At the same time, Australia gains access to a diverse range of quality organic products, from cereals and spices to beverages and processed foods. By fostering collaboration between stakeholders on both sides, the agreement sets a precedent for future cooperation in the global organic sector and reinforces the strategic partnership between the two nations.

(Sources: LiveMint, Times of India, Economic Times)