In a move set to bolster trade relations between the two countries, India has announced the removal of tariffs on Australian desi chickpeas until March 2025.
This decision brings promising prospects for Australian growers while showcasing the positive collaboration between the two nations, supported by initiatives from the Australian Government.
Philip Green OAM, the Australian High Commissioner to India, said:
“Australia welcomes India’s removal of chickpea tariffs through to 31 March 2025 and our farmers stand ready to support India’s needs.”
In 2023, a trade delegation from Australia, led by Minister Murray Watt, Grain Growers’ CEO Shona Gawel, alongside Grains Australia Pulse Council Chair Peter Wilson, and Grain Trade Australia CEO Pat O’Shannassy, embarked on a visit to India.
The objective of this delegation was to engage with Indian importers and decision-makers, advocating for Australia as a reliable and trusted trading partner.
The elimination of tariffs not only benefits Australian farmers but also signifies a win-win situation for both countries, fostering a conducive environment for trade in the agricultural sector.
Grains Australia, an industry body, anticipates that the combination of higher prices and growing demand from India will incentivize farmers to increase chickpea planting in the upcoming months.
Currently, India is the world’s biggest chickpea consumerĀ and Australia is the largest exporter of chickpeas. Australian desi chickpea prices rose from around A$810 ($535) a ton in February to more than A$900 last week in anticipation of the tariff decision.
According to the agriculture ministry’s forecast in March, chickpea harvest for the 2024/25 season is expected to reach 732,000 tons, marking a significant increase from 531,000 tons in 2023/24 and the highest yield since 2021/22.
In 2017, India initiated a 33% tariff on desi chickpeas to bolster domestic farming, later escalating it to 66%. Consequently, approximately 60% of Australia’s chickpea exports were directed to India, accounting for up to 90% of India’s chickpea imports, before the tariffs nearly halted the trade.
This development underscores the importance of proactive engagement and sustained efforts in key markets, highlighting the significance of respectful and continuous interaction for mutually beneficial outcomes.
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