India tariff on lentils set at 10 per cent, chickpea announcement pending

India has reinstated a 10 per cent tariff on lentils, with a decision on chickpeas still pending. See the latest.

Pulses have been a bright spot for grain and cropping farmers, both in returns and rotations, but the looming return of tariffs from India are now casting a shadow.

Australian growers had enjoyed a period of tariff-free trade with India since October 2021. However, that is set to end on March 31.

An announcement earlier this month provided clarity for lentil growers, with a 10 per cent tariff already introduced.

A Department of Agriculture, Fisheries and Forestry spokesperson said that on March 8, the Indian government notified that duties on lentil exports were reinstated to 10 per cent effective immediately.

“Reinstatement of tariffs for chickpeas is due on March 31 2025,” the spokesperson said.

Lentil tariffs were originally 33 per cent, and growers are hoping the current 10 per cent rate does not increase further.

Meanwhile, lupins are currently making $680 a tonne in Melbourne, while Desi chickpeas are returning $940 a tonne.

Mark Schilling from Cunliffe in South Australia. Picture: Sarah Reed

Lentil grower Mark Schilling, from Cunliffe in South Australia, said he was hoping any change to trade wouldn’t come at a detriment to farmers.

“We are in an age where wars are being fought with tariffs and not bombs,” he said.

“Give me free-trade any day.”

Mr Schilling said farmers would pivot and adapt to the pricing structure.

Grains Australia pulse council chairman Peter Wilson said he didn’t want to speculate before March 31 about the outcome for chickpeas, but was hopeful for the best result.

Mr Wilson said there were positive signals for the industry given the recent rain in northern NSW and Queensland and the boost it would provide for pulse crops.

He said in addition to taking into account how tariffs might impact returns farmers would also consider the overall value of pulses in cropping rotations.

Moree, NSW farmer Matthew Madden grows chickpeas and said recent rain was ideal for preparations of the upcoming winter crop.

His property has received 32mm of rain in the past two days and he was expecting more on the weekend.

“We are all hoping for the best outcome regarding tariffs on chickpeas,” he said.

Chickpeas make up 25 to 30 per cent of his winter cropping program.

“For some farmers in this area they could account for just under 50 per cent, chickpeas are an important crop in this area,” he said.