Australian exporters cut gram prices to sell more to India

23-Jan-2025 05:19 PM

It looks like Australian exporters are trying to make the most of the duty-free window for Desi gram exports to India before it potentially closes.

With the deadline set for March 31, 2025, Australian suppliers are lowering their prices to push through more contracts.

The price drop from $930 to $890-920 per tonne could be an effort to make the gram more attractive to Indian importers before the duty-free period ends, and the import duties could make it less competitive.

There’s also speculation that India may extend the duty-free import period for Desi gram, as they did with Arhar (Tuvar) recently, which could provide a bit of relief for Australian exporters.

If the duty-free period isn’t extended, it could be tough for them, especially if the old import duties are reinstated, leading to a potential reduction in Indian imports.

It seems like Australian gram production is on the rise, which could help offset the challenges of shrinking demand in India, with Bangladesh and Pakistan showing some interest, particularly during Ramadan.

How do you think this will impact the Australian market long-term? Will they find enough alternative markets to make up for the possible loss from India?