India drops lentil tariffs
14/02/2022 03:05
India has abolished all import tariffs on lentils from any origins but the US in a move that will bolster the Australian lentil sector.
The decision, effective immediately, was announced over the weekend and could unlock millions of dollars of value for Australian lentil exporters.
The subcontinental nation is by far the biggest market for lentils in the world but Australia has largely sold to other destinations since 30 per cent tariffs were imposed on Aussie product in 2017.
Last year there was a drop to 10pc tariffs in response to low Indian domestic production while this week the tariffs were suspended.
It is not known why the Indian government moved to drop tariffs, but it is understood the timing of last week's free trade agreement discussions between India and Australia was purely coincidental and not a factor in the decision.
Local farmers welcomed the news.
Grain Producers Australia chair, Barry Large said the move would help Australian growers capture more value for their product.
"The reduction of this tariff now is a welcome, positive step towards rebuilding trust and confidence in this important export market, to help optimise this high value crop's potential," Mr Large said.
Part of the reason the tariffs were implemented was the powerful Indian farmer lobby wanting to protect sales.
Mr Large said GPA understood the local sensitivities involved but hoped there would be greater certainty for Australian producers in the future.
"Trying to remove this market risk and curtail volatility will help support better planning and decisions by Australian growers and our industry, providing more stability and potential long-term growth opportunities and benefits from our trading relationship."
The Indian decision is not believed to apply to one of Australia's other high value pulse export crops in chickpeas.
Source: FarmOnline
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