The Indian government has slapped a slew of trade barriers on agricultural products to protect the interests of its farmers, since late 2017.
While the tariff on wheat was doubled to 20 per cent, a 50 per cent duty was introduced on field peas and a 30 per cent on the imports of chickpeas and lentils, a move which is hugely impacting the Australian grain and pulse growers.
As a result, the Australian government is mulling to file a formal trade complaint against India at the World Trade Organization (WTO).
Addressing a grains industry conference in Melbourne, Federal Minister of Trade, Steven Ciobo said, “These are profoundly disappointing developments”.
“They have had, and will continue to have, an adverse impact on Australian producers."
“While some of these trade actions are within WTO rules, there are real doubts about other measures and we are working closely with industry and other affected trading partners to evaluate the prospects for a successful challenge.”
Over the years, India has emerged as a huge market opportunity for Australian farmers.
In 2016-17, chickpea exports to India were pegged at about $1.92 billion, while lentil exports stood at nearly $200 million.
In addition, over 2.24 million tonnes of wheat alone was exported last season, setting a new benchmark for Australian exports to India.
Mr Ciobo further informed that the efforts to strike a free-trade deal with India have been stalled in the wake of the ongoing differences between the two countries on the matter of grain exports.
In the meantime, “the government has been looking at ways beyond free trade agreements to expand our bilateral economic relationship”, said Mr Ciobo.
