WIMMERA growers believe free-trade agreement negotiations much continue with India, despite a new tariff on pulses.
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India introduced a tariff of thirty percent on chickpeas and lentils late last year.
The tariff came into effect immediately, effecting shipments already on water, and catching farmers off guard.
Agriculture Minister David Littleproud visited India this month and said the Indian government had agreed to provide forward notice of any future tariffs imposed.
Warracknabeal farmer and Victorian Farmers Federation grains group president Ross Johns said while he was pleased that the Indian Government had made this concession, it was imperative that the Australian and Indian governments continue free-trade agreement negotiations.
“Australians producers compete in an international market without any government support, and therefore ensuring positive trade protocols with our trading partners is essential," he said.
Mr Johns said India must consider the long-term market distortion this tariff creates.
“Australian growers need a stable trade environment, with a reasonable expectation that the market conditions when they make their planting decisions will be reflective of the conditions at harvest,” he said.
“The increased potential for sudden and unpredictable drops in profitability will dampen the international supply of pulses.
“When India’s domestic supply has a harder year, it is vital that there is a sufficient international supply to meet the shortfall.”
“It is in India’s interest, as well as Australia’s, for our two countries to have an open and unencumbered trade relationship. We urge our government to resume free-trade negotiations with renewed vigour.”
India is a key market for Australian pulses, accounting for about 80 percent of Australian chickpea exports.
Mr Johns said majority of pulses grown in the Wimmera and Mallee were exported to either the middle east or India.
He said the effects of the tariff would be very large on Wimmera producers.
Mr Littleproud said while in India, he presented Australian concerns over the tariff changes.
"Australia has increased its pulse production over recent years with a particular goal of better supplying high-quality, safe products to the Indian market, where pulses are such a key part of people's daily diet,” he said.
“Australia exported $1.1 billion worth of chickpeas, $197 million worth of lentils and $29 million worth of mung beans to India in 2016–17.
"Australian suppliers of pulses need that certainty to ensure continued high quality exports into the future."
Rupanyup farmer and Grain Producers Australia chairman Andrew Weidemann said exporters would be the most effect by the tariff in the short-term, but said in the long-term the impost hurt the entire industry.
“Many farmers already had contracts locked in, but this is very tough for exporters if they are forced to take this hit,” he said.
“Down the track it will have flow on effects on pricing that will hurt growers and Australia’s pulse industry as a whole.”