MELBOURNE, 27 September 2022: In a bid to plug rising lentil prices in India, the country has extended zero tariffs on imports till March 2023, except for exports from the United States, which will attract a tariff of 22 %. Indian consumers will benefit from Australian exports of lentils with zero tariffs, as lentils are a staple diet across India.
According to the Australian Trade and Investment Commission, ” Exporters are encouraged to track the availability and retail prices of split pigeon peas (toor dal). Lentils can be used as a substitute when toor dal prices are too high.
Exporters should monitor Indian lentil plantings from October onwards. This applies in particular to plantings in Madhya Pradesh and Uttar Pradesh. Plantings will provide an indication of the likely volume of domestic production in early 2023.”
India is one of the world’s largest consumers and importers of lentils. The Indian Government adjusts lentil tariffs depending on the availability of lentils that are grown domestically.
Tariff rates have a substantial impact on the amount of lentils imported by India. For example, Australian lentil exports to India fell dramatically (Figure 2) following the introduction of a 30% tariff on lentils in December 2017.
The impact of the tariff change was exacerbated by dry conditions in Australia, which reduced the volume of Australian lentils available for export.
In 2021–22, the return of good seasonal conditions in Australia and reduced Indian tariffs led to a resurgence in trade. Australian exports of lentils to India increased by 253% compared to the average for the previous 3 years.
Australian pulse production is expected to be strong in 2022–23. This will likely lead to more opportunities for exports to India.
Australia exported worldwide 44,962 tonnes of chickpeas and 105,112t of lentils in July, according to the latest data from the Australian Bureau of Statistics (ABS). Apart from India, in South Asia, it also exports lentils to Pakistan, Sri Lanka, Bangladesh, and Nepal.
