Indian Government cuts import taxes on Australian lentils
India’s merry-go-round ride of taxing Australian lentils has gone full circle — but another revolution may be on the way.
India has slashed its taxes on Australian lentils by a third.
But the Australian industry is unclear as to how long it will last.
The Indian Government announced it would cut the 10 per cent import tariff on Australian lentils to zero and halve its Cess tax — used as a specific purpose levy to fund agricultural development in India — from 20 per cent to 10 per cent and its goods and services type tax to 1 per cent.
Collectively, the import duties fall from 33 per cent to 11 per cent.
Australian Oilseeds Federation executive director Nick Goddard said India reduced its tariffs last June but reimposed them in October for three months.
“When it becomes effective, I am unsure how long it will last.” Mr Goddard said.
Grain Producers Australia president Andrew Weidemann welcomed India’s move, saying it was good news for Australia’s growers.
“Growers understand the importance of tariff reductions in export markets such as this and the potential to translate the removal of these barriers into better returns on farm,” Mr Weidemann said.
“GPA has always been a strong supporter of removing barriers to fair trade, to ensure a level playing field and deliver better selling opportunities for Australian grain farmers in export markets.”
Mr Goddard said India wanted to be self-sufficient in pulse crops and had imposed import duties to encourage local production.
“When the seasons are good and the monsoons come, they are pretty well self-sufficient but it doesn’t take much to tip it the other way,” he said.
“They have only got to miss out on a little bit of rain or the monsoon comes late or there’s too much and there is flooding and they are not self-sufficient and India has to import.
“Australia’s role is now, as someone else has said, the back-up generator.”
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