TRADE sources are reporting the Indian Government has reduced its tariff to 10 per cent for lentils arriving on or before 31 October in its latest move to cap increases in domestic prices.
This returns it to the level imposed between early June and 31 August, when it dropped from 30pc to build up lentil stocks, mostly from Canada and Australia.
The reduced tariff could benefit the large Canadian crop now being harvested, but will be too early for the new Australian crop, which will mostly be harvested from November onward.
Australian stocks of current-crop lentils are very low ahead of the upcoming harvest, but some containerised exports out of Melbourne and Adelaide can be expected to catch the reduced tariff.
Unless the Indian Government opts to extend the low-tariff period, the import duty will revert to 30pc as of 1 November.
“It’s too early for the Australians to capitalise on, and it’s too early for the Canadians to make much use of,” Pulse Australia chief executive officer Nick Goddard said.
Thomas Elder Markets manager commodity market insights Andrew Whitelaw also said the lowered tariff would be of little benefit for Australian farmers.
“If the relief is extended beyond 1 November, then it will be a good factor for pricing signals,” Mr Whitelaw said in today’s Market Insights report.
Grain Central: Get our free daily cropping news straight to your inbox – Click here