Indian Chamber warns that India’s 30% tariff on pulses will seriously impact trade

February 7, 2018

BRISBANE – The Australia India Business Council fears that India’s decision to increase tariffs on pulses to30% will seriously impact trade with Australia – and has urged the Indian Government to consult with stakeholders in the Australian pulse market before any significant changes are made in tariff impositions.

India imposed a new 30% tariff on imports of lentils and chickpeas in December, citing record production of pulses in 2017 and sufficient domestic availability.  The tariff was imposed with immediate effect, so product already in transit to India was subject to the new 30% tariff.

The Australia India Business Council said it has consulted with key stakeholders in the Australian pulse market, including growers, traders and  grower associations. 

“Australian growers make decisions as to how much of their farmland to allocate to pulses years in advance of production,” the AIBC said.  “Any sudden increases in tariffs will adversely affect growers, particularly in circumstances where growers had increased production levels on the request of India, which had expected significant demand. 

The President of the Australia India Business Council - Queensland, Dr Nik Senapati, noted  that India is one of Australia’s largest trading partners in the pulse industry. 

“It is vital to ensure that commercial risks for all involved in the supply chain are kept to a minimum.  The Australian pulse industry is a safe and reliable supplier of pulses to the Indian market and an important industry in enhancing Australia/India business relations.” (ATI).