The Indian government announced a 30% tariff on chickpeas and lentils last week, effective immediately.
“Market interventions such as those seen over recent months in India create uncertainty and commercial risk for countries such as Australia, which strives to be a reliable food exporter,” said Pulse Australia in a statement.
Pulse Australia Chairman Ron Storey says, “There are two impacts. First, there is the product on the water, for which Pulse Australia believes the Indian Government ought to provide a tariff exemption. Initial indications are that some 200,000 tonnes (around A$150 million) of Australian chickpeas and lentils are in transit to India and may be affected.”
“Second, there is the longer term issue of the impact of tariffs on food security,” says Mr Storey, “While India strives for self-sufficiency in pulse production, most projections are that India’s reliance on imports for the foreseeable future must continue to guarantee the security of this vital protein source for the Indian population.”
Australian farmers have appealed India via Australian Government to clarify the matter.
In 2016-17, Australia exported chickpeas worth the value of about $1.92 billion. Its exports to India were valued at more than $1.1 billion.