Chickpea tariff to India suspended

Growers have welcomed the removal of a 66 per cent tariff on Australian chickpea exports to India. See what it means for farmers.

Tariffs on Australian chickpeas destined to India have been suspended for the first time in seven years.

The news has been welcomed by Australian growers who will have a tariff-free trading period until at least March next year.

However, Victorian growers say while the suspension of the 66 per cent impost was welcome more growers were taking up the option of lentils rather than chickpeas.

Victorian Farmers Federation grains group president and Berriwillock farmer Craig Henderson said the tariff lift would probably have more of an impact for northern NSW growers, particularly those around Moree.

“It is something that is good to see but there are not a lot of chickpeas going in,” he said.

Mr Henderson said given the prices for lentils, currently tracking at $985 a tonne at Victorian ports, there was an uptick of this crop in Victoria.

Chickpea harvest at Bellata in NSW. Picture: Andrew McClenaghan

“We will wait and see what happens this year with lentils being popular and doing well in different areas,” he said.

Mr Henderson said going on the current market for lentils chickpeas in Victoria would probably bring in around half of the returns in comparison.

Meanwhile, Grains Australia has welcomed the move to suspend the tariff that had initially started off at 33 per cent and later increased to 66 per cent.

Representatives of Grains Australia had met in New Delhi in February this year at the Global Pulse Confederation. However, it had taken until now for the tariff announcement to come into effect.

Grains Australia pulse council chairman Peter Wilson said Australia’s largest chickpea markets were Pakistan and Bangladesh.

Mr Wilson said the tariff suspension would likely provide more reliable pricing for Australian growers.

IKON Commodities director of brokering Sam Sloane said news of tariff suspensions had generated an immediate market uptick for chickpeas.

With the announcement over the weekend current consignments are up above $250 a tonne, and new crop up $200 a tonne when compared to trends three months ago.