India and Australia Seal Organic Trade Pact to Expand Market Access and Raise Farmer Incomes

New Delhi, 25 September 2025: India and Australia have signed a landmark agreement to promote the trade of organic products, a move that will align certification systems, cut regulatory barriers, and widen opportunities for exporters and farmers.

Organic Pact Valued for Recognition of Standards and Lower Certification Barriers

The Mutual Recognition Arrangement (MRA), signed on Wednesday, is designed to harmonise organic certification standards between the two nations. By accepting each other’s certification processes, India and Australia will remove duplicative checks, lower compliance costs, and expand access for producers in both countries.

The pact, implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA) in India and the Department of Agriculture, Fisheries and Forestry (DAFF) in Australia, is expected to boost bilateral trade in high-value organic products such as cereals, tea, spices, and wines.

Farmer Benefits as Organic Produce Fetches 30-40% Price Premium

With organic produce typically earning 30–40% higher market prices, the agreement is projected to raise farmer incomes and encourage sustainable cultivation practices. Expanded exports will allow Indian producers to tap into Australia’s established demand for certified organic goods, while Australian farmers will gain smoother access to India’s fast-growing consumer market for premium foods.

This dual access is expected to strengthen rural economies in both countries while also promoting stricter adherence to transparent organic labelling and regulatory oversight.

India’s Organic Exports to Australia Rise to USD 8.96 Million in FY25

India exported 2,781.58 metric tonnes of organic products worth USD 8.96 million to Australia in FY25. Leading items included psyllium husk, coconut milk, and rice. The deal will open doors for a wider basket of goods, particularly processed foods and beverages.

Commerce Secretary Sunil Barthwal emphasised the importance of India’s National Programme for Organic Production (NPOP) in upholding credibility and transparency. He underscored the need for stricter labelling and penalties to prevent adulteration, alongside capacity-building measures for farmers.

From Australia, Tom Black, First Assistant Secretary at DAFF, highlighted the country’s 53 million hectares of organic farmland, the largest globally. He noted that the arrangement creates new momentum for trade in wine, tea, spices, and cereals, reinforcing Australia’s strength in sustainable farming.

Agreement Strengthens Bilateral Trade and Expands Organic Market Potential

The pact represents a significant step in deepening India–Australia trade relations, moving beyond traditional commodities to focus on sustainability-driven categories. The recognition of organic certification equivalence is expected to reduce trade friction, open new market segments, and elevate organic product visibility in both domestic and international markets.

By facilitating smoother market entry and stronger consumer trust in certification, the deal marks a milestone in broadening the global footprint of organic producers from both nations.

The India–Australia organic trade pact signals a stronger regulatory and trade framework for sustainable produce. By aligning certification standards, the agreement removes barriers, broadens export opportunities, and boosts farmer incomes while promoting credibility and transparency in the organic ecosystem. This development positions both countries to expand their footprint in the global organic trade market.

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