South African citrus gets fresh route into India after decade-long talks

Cape Town – South African citrus exporters are set to gain greater flexibility in accessing the Indian market after India approved additional cold-treatment options for fresh citrus fruit following almost a decade of negotiations.

The approval was announced jointly by the Citrus Growers’ Association of Southern Africa (CGA) and the Department of Agriculture on Tuesday, with the industry saying the new treatment protocols would improve fruit quality and provide exporters with greater logistical flexibility.

South Africa already exports citrus to India under existing fruit-fly treatment protocols, but the additional options are expected to make shipments more efficient.

Agriculture Minister Willie Aucamp welcomed the development, saying it demonstrated the role of technology in expanding international market access for South African producers.

“It indicates how advanced technology enables South African farmers to push barriers to have other countries enjoy our high-quality produce,” Aucamp said.

India seen as major growth market

The development comes as South African citrus producers seek to expand their presence in India, a market of about 1.47 billion people and one of the world’s fastest-growing major economies.

South Africa’s citrus exports to India currently account for a relatively small share of the country’s overall citrus exports, leaving significant room for growth.

India is also one of the world’s largest citrus producers, meaning consumers are already familiar with the fruit category. South African producers could benefit from supplying the market during its off-season, particularly as the country’s middle class expands and demand for healthier foods and mandarin-type citrus grows.

CGA chief executive Dr Boitshoko Ntshabele credited the Department of Agriculture and Citrus Research International for their technical engagement with Indian authorities.

“This demonstrates the importance of sustained public-private partnership in improving technical conditions for accessing markets,” Ntshabele said.

However, he said improving phytosanitary access was only one part of the challenge facing exporters.

Tariffs remain a challenge

Ntshabele said attention should now shift towards reducing the tariff burden on South African citrus entering India.

South African exporters currently face Most-Favoured-Nation tariffs of about 25% to 30%, putting them at a disadvantage against competitors from other Southern Hemisphere countries that benefit from preferential trade arrangements.

“We look forward to working with the Department of Trade, Industry and Competition (the dtic) on the critical task of addressing these tariff barriers and improving the competitiveness of South African citrus in the Indian market going forward,” Ntshabele said.

The CGA said progress towards a Southern African Customs Union (SACU)-India Preferential Trade Agreement could further improve the prospects for South African citrus exporters.

The industry said combining improved phytosanitary access with lower tariffs would be critical to unlocking India’s market potential.

“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,” the association said.

The latest agreement therefore removes one of the technical barriers facing South African exporters, while negotiations around preferential tariffs remain important to determining how quickly the industry can expand its footprint in India.