India Cuts Lentil Tariff, Move Welcomed by Australian Grain Growers
Raamesh Gowri Raghvan | On 04, Aug 2021
Australian farmers have welcomed the Indian Government’s decision to cut tariffs on red lentils from 33 per cent to 11 per cent. The tariffs were initially implemented by the Indian Government to protect domestic farmers and to get a balance between domestic production and the export of agricultural products.
Australian farmers are hoping to capitalise on these tax reductions. Australian lentils mostly grow in the areas of South Australia and Victoria. Grain Producers SA chair Adrian McCabe says crops are looking good, giving an additional boost for SA grain growers.
Previously, India’s implementation of high tariffs for lentils and chickpeas prevented Australian farmers from exporting their produce.
Goddard added that Australian farmers must also expect tariffs to fluctuate in the future. While India continues to work to be self-sufficient in producing lentils and other pulse crops, crops will still depend on the monsoon season. They usually get a good harvest during the monsoon. However, if the monsoons do not arrive on time, the crop production is expected to drop, which will result in India importing pulses from Australia.