India lifts tariffs on chickpeas, boosting Australian exports
In a significant move for international trade, the Indian Government announced on Friday the removal of tariffs on chickpeas until March 2025, a decision that is poised to greatly benefit Australian growers and the global pulse market.
Chickpeas tariff suspension timed with planting season
The removal of the tariffs, effective immediately, aligns strategically with the upcoming chickpea planting season in Australia’s southern and Central Queensland and northern New South Wales regions.
This policy shift is a relief to Australian farmers and traders who have been contending with challenging market conditions since the imposition of high tariffs back in 2017/2018.
Historical context and market impact
India, the world’s largest consumer of chickpeas, had previously set the tariffs at a steep 66 percent, which drastically affected the export dynamics, especially following Australia’s record 2016-17 crop yield of 2 million tonnes.
Since then, due to unfavorable seasons and restrictive tariffs, no subsequent crop has surpassed 1 million tonnes. However, with current excellent subsoil moisture conditions and renewed access to the Indian market, Australia anticipates a yield exceeding 1 million tonnes this year.
Industry and government responses
The news, shared by John Southwell, the Australian Government’s Trade and Investment’s South Asia commissioner, on LinkedIn, was met with enthusiasm from various sectors.
Grains Australia, in particular, hailed the decision as a pivotal development for both Australian farmers and the broader Indian pulse market. Peter Wilson, Chair of Grains Australia Pulse Council, emphasized that this outcome showcases the benefits of sustained and respectful engagement with a key trade partner.
Boosting competition and market expansion
With the tariffs lifted, Australian chickpea exporters expect more stable pricing and enhanced market competitiveness.
The suspension is anticipated to not only revitalize the chickpea trade with India but also strengthen Australia’s position in other significant markets like Bangladesh, the United Arab Emirates, and Pakistan.
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