Uncertainty lingers over Aussie lentil and chickpea tariffs

Australian chickpea and lentil growers are waiting to hear whether or not a tariff will be reinstated by India. See what it would mean for prices.

Australian farmers are taking a wait-and-see approach regarding the potential imposition of a 30 per cent tariff on chickpeas and lentils next month.

Australian growers have tariff-free status when trading with India, however, the deadline for that arrangement is set to end on March 31.

Lentils are currently making $970 a tonne in Victoria. Last week, the price was $1000 a tonne.

If the Indian Government reinstated tariffs, it would result in an almost immediate 30 per cent price cut for growers.

The zero-tariff period has been in place for Australian growers since October 2021.

Grain Producers Australia chairman Barry Large from Miling in Western Australia said everything was positive regarding keeping the market for both lentils and chickpeas going.

“There has been a lot of lentils and chickpeas traded recently,” he said.

“We don’t know if the tariff will be implemented at this stage. It will depend on the government’s appetite in India and how big the crops are over there, but at the moment, the signals are that the market is strong,” he said.

Rick Plant of Manangatang in a lentil crop. Picture: Yuri Kouzmin

According to the Australian Bureau of Statistics, in December last year, Australia exported 780,917 tonnes of chickpeas and 239,900 tonnes of lentils, with the majority destined for India.

Chickpea grower Matthew Madden from Moree, NSW, said whether or not the tariff-free status was extended would be a factor in farmers’ decisions about growing the crop.

He said if there was a 30 per cent reduction in the price farmers would consider their options.

“They may consider faba beans, and canola is a (rotation) option too,” he said.

“We are hopeful that the Indian government will foresee that they need Australian imports,” he said.

“I wish we had a crystal ball to know what would happen regarding tariffs.”

Manangatang farmer Rick Plant includes lentils in the winter cropping rotation and said he was still planning to grow them in 2025.

“The tariffs haven’t happened just at the minute, and it won’t have a direct bearing on what we do,” he said.

Mr Plant has grown lentils for nine years and said they fit into the rotation well.

“The last time there was a tariff (on lentils), we took a bit of a haircut. There was a price dent of $300 to $400 a tonne,” he said.

He plans to grow wheat, barley, lentils, lupins and, vetch and some field peas.