June 26, 2023
Following meetings between USA President Joe Biden and Indian Prime Minister Narendra Modi held in Washington on June 22, 2023, it has been announced that the Government of India has removed the retaliatory tariffs on USA pulses and other products.
USA lentils have been subject to a tariff since November 2017 and chickpeas since the summer of 2018. The announcement is welcome news to members of the USA Dry Pea and Lentil Council (USADPLC), which has been meeting with the US Trade Representative’s (USTR) office and the Government of India several times per year since the tariffs went into place in 2017.
In a press release yesterday, Tim McGreevy, CEO of USADPLC, said, "We extend our appreciation to President Biden, Ambassador Tai, the United States Trade Representative’s office and the Government of India for the announcement expected today. U.S. pulse farmers and shippers extend our gratitude to all industry members in India and the U.S. who have steadfastly supported us in our endeavor to return to fair access to this important market for U.S. lentils and chickpeas.”
With the 2023 pigeon pea harvest in India reported as below average and Medium-sized green lentils historically a substitute for pigeon peas in Southern India, the removal of tariffs reopens a significant export opportunity for USA lentil producers.
Jeff Van Pevenage, CEO of Columbia Grain International, said of the announcement: “Leveling the playing field with Canada for import duties to India should eliminate the illegal shipments of US Richleas via Canada using Canadian labeling and Phytos. This is good for US pulse industry members.”
Van Pevenage also commented that lower lentil production in the USA may extend the timeline for trade possibilities, saying: “US lentil stocks are tight and probably won't provide near term opportunities. US lentil acreage is trending lower and we do see many strong markets but if we can reverse this production trend in future years this will be an effective market chain.”
In the USADPLC press release, Vice President of Marketing Jeff Rumney stated: “We are grateful for this decision that will allow the pulse industry to rebuild trade between the two nations. The trade members have long valued the exceptional quality of pulses imported imported from the U.S. and maintained a strong relationship spanning several decades."
Until yesterday, the tariffs imposed by the Government of India were 22% for lentils and 77% for chickpeas (desi and kabuli types). The 55% import tariff for dry peas remains in place.
