This is due to a decision by the Indian Government to impose a 30 per cent tariff on chickpea and lentil imports – effective immediately.

As the industry tries to digest the implications of the decision, Pulse Australia’s short-term priority is to ensure product en route to India is not subject to the tariff.

It is working with the federal government to get clarity from India on whether consignments on the way to India will be exempt.

The first wave of 2017-18 exports to India – Australia’s largest market for chickpeas and lentils – have been loaded and are on the water. There are an estimated 200,000 tonnes of pulses, worth about $150 million, headed for India at present.

The Indian decision has been made in order to try and curb a fall in prices which would hurt Indian farmers, following an improved season in terms of production after a run of below average years.

The chickpea and lentil tariff, which was announced on December 21, follows hot on the heels of a 50 per cent import tariff on field peas.

Smaller tariffs are imposed for other commodities such as wheat and palm oil.

Aussie pulse values have already tumbled, with desi chickpeas sitting between $600 and 650 a tonne delivered upcountry in most Australian regions – less than half the values at the top of the market mid last year.

It comes as a blow for growers who are yet to market this year’s crop, while the export sector will have to look for alternative homes for remaining chickpea and lentil tonnages.

Pulse Australia chairman Ron Storey said the priority was trying to ensure the product already exported but which had not arrived was not subject to the tariff.

“Pulse Australia believes the Indian Government ought to provide a tariff exemption on product on the water,” he said.

“The Indian Government should provide an exemption for Indian importers for product contracted and shipped prior to the new tariff being announced.” 

He said the federal government would work with Canada – another big exporter of pulses to India – on the matter.

In the longer term, Mr Storey said tariffs destroyed confidence in the sector.

“While India strives for self-sufficiency in pulse production, most projections are that India’s reliance on imports for the foreseeable future must continue to guarantee the security of this vital protein source for the Indian population,” he said. 

Mr Storey said demand had emerged elsewhere for Australian chickpeas and lentils, such as Bangladesh and Pakistan.

Grain Producers Australia chairman Andrew Weidemann said the move was a negative for all involved with the Indian pulse trade.

“Tariff barriers create disincentives for both marketers and growers, decreasing the incentive to grow the crop which will create severe shortages of product in adverse production years, with additional price impact for India’s domestic consumers,” Mr Weidemann said.