India Slaps Import Tax on Chickpea, Red Lentils Merry Christmas!

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India Slaps Import Tax on Chickpea, Red Lentils Merry Christmas!

SASKFARMER3's Avatar Dec 22, 2017 | 06:59 1 As feared by Canadian exporters, India is now introducing import tariffs on chickpeas and lentils.
The Indian government announced the 30% lentil and chickpea tariffs on Thursday, which come in the wake of the 50% tariff India slapped on dry pea imports back in November.
“Production of chana (chickpeas) and masoor (lentils) are expected to be high during the forthcoming Rabi season, and cheap imports, if allowed unabated, are likely to adversely affect the interest of the farmers,” the Indian government said in a statement.
Reports out of India noted that domestic chickpea prices had already risen by 4% in response to the announcement.

But in Canada almost all the Inoculants for 2018 are gone.

WTF is it What you going to grow 1/3/ lentils 1/3 canola and 1/3 Durum. But its dry I know i did the math and thats the best scenario with Crop insurance.

So inoculate and seed and if it doesn't grow Average is up i get paid.

I think the above scenario is more whats going on than farmers are going to plant so many acres of Lentils and peas. Reply With Quote
Dec 22, 2017 | 08:10 2 It seems that the federal government has a responsibility to help solve this telling the Indian government that Canada is longer accepting imports from that country.....

I think since politicians make obscene money that maybe they could skip their 6 week break and do some work ... Reply With Quote
iceman's Avatar Dec 22, 2017 | 09:34 3 But can you even find chickpea seed and at what cost?
$120 bucks a acre for the seed alone now that's a chaser crop. Yes acres will be up but remember this isn't a red lentil chasing with a $25 to $30 dollar seed cost.
On a normal year chickpea innoculant is hard to come by so don't read a lot into input theives games.

Iceman Out Reply With Quote
Dec 22, 2017 | 11:52 4 I think there is more to this story. India's economy is in a tail spin after the government pulled the stunt of confiscating the high denomination rupee notes in order to supposedly stop tax evasion. This was very negative to the poor as they deal in cash and don't usually have bank accounts. This has the effect of reducing demand particularly for food stuffs as most on these peoples income goes to improving diet. This has had the effect of reducing economic activity and thus dropping tax levels in general. So the government is looking for new things to tax. Hmm a corrupt government crackdown on tax cheating reducing economic growth. What were the lieberals trying to do last summer again? Reply With Quote
Dec 22, 2017 | 14:49 5 CHICK pea prices dropped $150 a tonne overnight and traders were looking for new markets for shipments already on the water after the Indian Government suddenly imposed a 30 per cent tariff.

The 30 per cent tariff, announced last night, was effective immediately.

The tariff on chick peas and lentils follows a 50 per cent tariff on wheat and field peas imposed last month.

Grains Industry Market Access Forum executive director Tony Russell said the impact on prices would be “massive.”

“Australia is the biggest exporter of chick peas to India by far,” Mr Russell said.

“Lentils is an extremely import crop too and it will flatten our prices.

“The vast majority of our chick peas and lentils go for export.”

Mr Russell estimated lentils would drop $100 a tonne following the announcement.

Wimpak general manager marketing James French said kabuli chick peas delivered to Melbourne were trading at $1100 a tonne and today the price dropped to $950/tonne.

“We’ve not been able to get a price on anything else because nobody wants to bid,” Mr French said.

He said some exporters were trying to redirect shipments already.

“If they get to India and the pulses are worth $US1000 a tonne, then they’re now looking at an extra $US300 a tonne,” Mr French said.

Ross Johns
Victorian Farmers Federation grains group president Ross Johns said the tariffs would “certainly have an impact on Australian farmers”.

He said grain farmers had been buffeted by a poor season and frosts, and were now being affected by global trade decisions.

Mr Johns said farmers were carrying the risk “from the point where we put the crop in the ground.”

He said there was still a lot of chick peas and lentils to be harvested in Victoria.

“It’s a sad state of affairs,” Mr Johns said.

“It will have an impact on Indian domestic consumers — I would have thought feeding their people would have been a high priority for the Indian Government.”

Pulse Australia executive director Nick Goddard said while there had been rumours for a while, the speed at which the tariff was implemented was a shock.

“There are chick peas and lentils on the water that will be affected by this,” he said.

Mr Goddard said industry was keen to see if goods in transit could escape the tariff. Reply With Quote