Australia is pressing India to allow a transition period for newly introduced tariffs on imported pulses to avoid any disruption to existing contracts or shipments in transit. India last week imposed a 30 per cent tax on chickpea and red lentil imports, just a month after putting a 50 per cent tariff on peas, to support local farmers. Trade Minister Steven Ciobo said in a statement on Friday that he has asked his Indian counterpart for a period of transition for the tariffs on chickpeas and red lentils and was seeking a swift resolution.
Australia exports about A$1.2 billion ($935 million) of the two pulses each year. Analysts estimate that India accounts about half of the shipments. The tariffs are a further blow for local farmers after Australia's official commodities forecaster this month pegged production of chickpeas to fall nearly 50 per ccent in the current season due to adverse weather.