AUSTRALIAN grain exporters have won a crucial concession from the Sri Lankan government in regards to treatment of grain for export to the South Asian island.
The Australian government confirmed this week that Sri Lanka had approved an agreement to allow in-transit use of phosphine fumigation to treat Australia bulk grain, oilseed or pulse exports.
Grain Producers Australia (GPA) chairman Andrew Weidemann said this was a big plus to the sector as it allowed more economic treatment of the grain and reduced the risk of incurring costly demurrage costs at port.
He said Sri Lanka was a small, but growing market for all types of Australian grain.
"We did $160 million worth of sales there in the last year and they are very strong buyers of our pulses in particular," Mr Weidemann said.
"Hopefully this deal allows us to grow that market and also sell more wheat there."
"It is a small market, but it's very important, especially in the pulse sector and it's also growing, so this is great news."
Minister for Agriculture, Drought and Emergency Management David Littleproud echoed Mr Weidemann's delight, saying the Sri Lankan decision would provide greater flexibility for the Australian grains industry.
"This is a fantastic opportunity for Australian exporters to not only improve our trade relationships with an important partner, but to expand markets for Australian grains, pulses and oilseeds," Mr Littleproud said.
He said Sri Lankan consumers would also see the benefits of the move.
"As the product is treated in transit, it gets to the market quicker and into the Sri Lankan value chain faster," he said.