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India has dropped its import tariff on lentils paving the way in which for Australian farmers to money in after a bumper harvest.
- India has eliminated an 11 per cent import tariff on lentils
- The tariff is eliminated efficient instantly
- Earlier than the tariff, India imported greater than $900 million of lentils
New Delhi introduced it could cut back the tariff to zero over the weekend, efficient instantly.
A prohibitive 66 per cent tariff on chickpeas stays.
India utilized tariffs of 33 per cent to each lentils and chickpeas in 2017, chopping the lentil tax to 11 per cent in 2020.
In line with the Division of Overseas Affairs and Commerce earlier than the introduction of the tariff India was the world’s largest buyer for lentils and the commerce was valued at near $1 billion.
Grain Producers Australia spokesman Andrew Wiedemann mentioned it was nice information for farmers to have the lentil tariff “lastly again to floor zero”.
Mr Weidemann understood India would look to assessment the removing of the tariff on the finish of September and warned “It might probably additionally flip itself round in a short time once more”.
Australia’s farmers recorded a document grain harvest this yr and it’s anticipated many farmers would have lentils able to commerce into India, set to learn from the brand new commerce circumstances.
India’s resolution to drop the tariff follows simply days after Australia’s commerce minister Dan Tehan travelled to India as a part of negotiations for a free commerce settlement.
Grain Growers chief govt Dave McKeon hoped the negotiations would create a possibility to higher circumstances for Australian farmers.
“It is nice to see an final result on lentils, fingers cross for chickpeas,” Mr McKeon mentioned.
“We have to have an revolutionary and forward-focused method to keep away from pointless commerce limitations into the long run.”
Grain Growers had been looking for to have a grain annex included within the commerce settlement, particularly outlining commerce preparations for the grain commerce with India.
In line with the grower group, regardless of India accounting for the world’s second-largest inhabitants, it presently imports lower than 2 per cent of Australia’s grain harvest.