Chickpea
Chickpea Pixabay

Australia's desi chickpea industry saw a significant uptick after the Indian tax on chickpeas was lifted. This action might mean the resuscitation of a multimillion-dollar trading partnership.

Due to a subpar local harvest, India, the world's largest consumer of chickpeas, has temporarily lifted import restrictions. The current increase in both the price and demand for chickpeas is offering Australian exporters an ideal opportunity. Long-term industry analysts predict a surge in Australian chickpea farming, which might solidify Australia's position as a major supplier to India for its chickpea needs, ABC.net.au reported.

India imposed hefty levies (tariffs) on Australian imports of chickpeas in 2017 to support its farmers. The majority of the chickpea commerce between the two nations was essentially halted when these duties increased from 33% to 66%. India used to get 60% of Australia's chickpea imports, and 60% of Australia's exports were chickpeas. India is expected to retake its position as Australia's top market for chickpeas, but competition for the crop is expected to be fierce now that levies have been removed.

Confident about chickpeas, Agronomist Peter Birch of Moree believes that producers have a great opportunity with the price of $1,000+ per tonne, and he anticipates a spike in plantings.

"There will be a huge chickpea plant [now] and I suspect it might be the biggest we've had [in this region]," he told ABC News.

"Not just the people who already had chickpeas in their rotations, but there'll probably be some growers change from [planting] later wheat and barley crops, to putting chickpeas in."

"Australian exporters will be immediately positioning product for Indian ports," Peter Wilson, chair of Grain Australia's pulse council told Reuters.

Before tariffs, India was Australia's primary consumer accounting for 2 million tonnes of worldwide chickpea shipments. However, a change of direction was required due to tariffs imposed by India. Australia's export-oriented chickpeas were so adaptable that by 2022, 80% of them were consumed in Bangladesh and Pakistan.