Australia's wine export to China touched AU$86 million in April, one month after the removal of tariff, Trade Minister Don Farrell has revealed.

In recent months, China has lifted a ban on most Australian imports, except for lobster, Reuters reported.

"I'm very optimistic that we can get a full recovery of the Australian wine market into China," Farrell said Wednesday in South Australia. "All the evidence so far is that there's pent up demand for Australian wine into the Chinese market."

In 2020, before the tariff was imposed, Australia had exported wine worth AU$800 million to China. As Australia is battling oversupply, a recovery to the 2020 level would be a boon to the local wine makers.

Trade relations between the two countries collapsed when Australia demanded a probe in Wuhan, considered to be the epicenter of Covid breakout.

Most of the wine exported in April was of premium quality, Farrell said, adding that the segment fared well in the Chinese market.

Meanwhile, the federal government announced a AU$3.5 million Grape and Wine Sector Long-term Viability Support Package aimed at providing support to the wine industry in dealing with oversupply of red wine. In addition, the funding will help build new markets and diversify into alternative products.

"Through this new funding we will start the important work on a national vineyard register, promote Australian wine domestically, and put people in overseas markets like Japan and China to build trade relationships," Agriculture Minister Murray Watt stated.

The government has extended support to Wine Tourism and Cellar Door Grant Program for another year. The program is an initiative to boost domestic sales and promote agro-tourism by attracting visitors to wine regions.