The MV Watatsumi discharges SA lentils at Mundra as the first cargo under a 50pc tariff reduction available for 37,500t per quarter. Photo: Viterra

THE FIRST cargo of Australian lentils into India subject to a half tariff, and under quota, has been discharged in the north-west port of Mundra.

Shipped by major South Australian bulk handler Viterra, the 21,000-tonne cargo loaded at Port Lincoln on SA’s Eyre Peninsula and was unloaded late last month.

The reduced tariff, and the quota, have come under the Australia-India Economic Cooperation and Trade Agreement.

For Australia, it replaces a tariff-free period for lentils which started in 2021, and ended on March 31.

During the first five months of its shipping year which started October 1,  Australia shipped roughly 275,000t of lentils to India.

Valued at A$21 million, the 21,000t Viterra cargo is expected to be the only bulk one to India in March.

“Thanks to the Australian and Indian Governments’ agreement, growers can continue to access this premium market,” Viterra chief executive officer ANZ Philip Hughes said.

“South Australian lentils are in demand due to their high quality.

“We look forward to continuing to support South Australian lentil growers by connecting them with our Indian end-use customers.”

The Australian Government’s Department of Agriculture, Fisheries and Forestry manages five tariff-rates quotas, with the others being for almonds, cotton, oranges and lemons, and pears.

The lentil quota runs per calendar-year quarter, each with 37,500t apportioned, and any unused quota rolls into the following quarter.

Quota is allocated on a first come, first served basis, and one trade source said shipment is required within three weeks of applying to DAFF for the permit, which also requires provision of the importer’s details.

Bulk or containerised lentils that miss the 50-percent tariff reduction for Australia with its most-favoured nation status are subject to a tariff equating to 11pc of the value.

“If some buyers have shipments on the water and they miss the lower tariff, they’re saying…’you wear it’,” one trader said.

Chickpeas, which also lost their tariff-free status on March 31, are subject to the same 11pc tariff, but no 50pc tariff reduction, and no quota.

With the Australian dollar so low, exports of both chickpeas and lentils into India with the full 11pc tariff are not seen as out of the question.

Australia’s chickpea stocks are believed to be low, and demand from Pakistan has picked up in response to its lacklustre crop and low carry-out.

Therefore, traders are quoting current-crop Australian chickpeas at around $900/t delivered Downs packer, and $800/t for new crop, with some growers forward selling tonnage now that soil-moisture profiles are full and a 2025-26 crop looks assured.

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