India and Pakistan hold significance as major markets for Australian pulses

Farmers are monitoring the India-Pakistan conflict, assessing potential impacts on the pulse trade and export markets. Here’s what we know.

Farmers are taking a wait-and-see approach as to how the Indian-Pakistan conflict may affect billions of dollars in pulse trade.

On May 7, India launched air strikes targeting nine sites in Pakistan and Pakistan-administered Kashmir. It followed an April 22 terrorist attack in Kashmir that killed 26 people.

While the conflict is in its infancy, farmers say they are concerned as to how it might affect trade.

A Department of Agriculture, Fisheries and Forestry spokesperson said in 2024 India was Australia’s largest market for pulse exports with a total value of $1.6bn.

At the same time, Pakistan was the fourth largest market for pulse exports with a total value of $217m.

Farmers keep a close watch on the Indian-Pakistan conflict, the location where large amounts of Australian pulses are destined. Picture: Matt Turner.

Grain Producers Australia’s southern region director, Andrew Weidemann, said it was a very volatile situation between the two countries.

“India and Pakistan buy a lot of pulses from Australia, and we are watching this as it emerges to see what implications it might have on producers,” he said.

Mr Weidemann said it was too early to see any direct impact on markets at this stage.

Moree, NSW farmer Matthew Madden said chickpeas were an important crop in his rotation and made up at least 40 per cent of planting.

“This is a developing situation, and the global instability is a concern,” he said.

Western Australian grower and GrainGrowers chairman Rhys Turton said the conflict had the potential to affect trade flow.

“Everyone is just focused on getting the crop in the ground at the moment, but if it expands, then yes it is an issue,” he said.

It comes after Australian lentil and chickpea exports to India were hit with new tariffs recently.

A tariff of 11 per cent on lentils and 10 per cent on Desi chickpeas was announced by the Indian government, following a previous tariff-free period, in March this year.