Lentil tariff extension
After a bumper 2023 season, lentil prices looks set to continue their strong form after a new development on the international market.
Tariff-free access for lentils to India is set to continue until March 2025 and could see the crop earning more popularity in Australia.
Lentil prices were shining during the 2023 cropping year, with plenty of success reported throughout the Wimmera and Mallee.
Nugget lentils are currently trading at $910 a tonne, which means many farmers have opted to sell directly rather than store them on-farm.
In contrast, canola prices are looking lacklustre at $625 a tonne.
Initially, the tariff-free access to India was to cease on March 31. However, the extension has been welcomed by those in the cropping sector.
NSW Farmers grains committee president and southern NSW cropping farmer Justin Everitt said any news of a tariff lift was brilliant, but this was especially good for the pulse industry.
“It is great news for lentils,” he said.
Mr Everitt said there had been good results reported from people growing lentils and the crop served well in terms of offering rotational options.
“More people will probably consider lentils too, given the recent high prices,” he said.
“It is something I have thought about; I have thought of putting lentils in.”
Mr Everitt said he wasn’t sure if the soil type in his region was conducive, but he would consider the crop in the future.
“We are always looking for that break-crop replacement,” he said.
Rupanyup grower and Grain Producers Australia southern region director Andrew Weidemann said 2023 had been a good year for lentils.
“It has been a real growth phase for the crop,” he said.
And with prices constantly nudging more than $800 a tonne, he said more people would consider planting the crop.
“We have been growing lentils since 1996,” he said.
Mr Weidemann said the continuation of tariff-free access, combined with reasonable prices, would encourage people to consider lentils for the 2024 sowing program.
He said the market to India was sensitive because more than 50 per cent of the country was involved in agriculture.
“It is a sensitive market, but the news on tariffs changes the political positioning too,” he said.
Grains Australia Pulse Council chairman Peter Wilson said the tariff-free access to India was first initiated on October 13, 2021.
He said the zero-tariff extension presented as an opportunity for Australian growers.
Under the Australia-India Economic Cooperation and Trade Agreement, tariffs on lentils had previously received a 50 per cent reduction in price.
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