Australian pulses exporters may face increased difficulties in the global market

07-May-2025 05:14 PM

Brisbane. Pulses like gram, lentil, faba beans, lupin and peas are exported in large quantities from Australia, but shifting global demand and supply dynamics may create significant challenges for exporters in the coming months.

A new report from Rabo Bank highlights that monetary instability and rising shipping costs could negatively impact pulse prices and export margins.

According to the report, lentils, gram, and faba beans from Australia are mainly exported to South Asia and the Middle East. India remains one of the largest importers of pulses.

While the US-China trade war has not significantly affected pulse trade in this region so far, China's imposition of a 100 percent customs duty on Canadian peas may disrupt global market trends.

Although Australia's pea exports are smaller compared to gram and lentils, the potential opening of the Chinese market could prompt Australian farmers to focus more on pea cultivation.

India may continue importing lentils but is expected to restrict gram imports. In countries like Bangladesh, Pakistan, Sri Lanka and Nepal, the weakening of local currencies against the US dollar is likely to make pulse imports, especially lentils and gram, more selective and price-sensitive.

Another major concern is transportation cost. If both commodity prices and shipment expenses rise in Australia, it may become difficult for these importing nations to sustain or increase their purchases.

Meanwhile, the US and Canada are expected to try expanding their lentil and pea exports to Asian markets. However, the success of this effort will depend on whether their export offers remain competitive against Australian prices.

India has imposed an 11 percent customs duty on lentils and gram, while no final decision has been taken yet on yellow peas. Despite this, India has recorded imports of gram during the 2024-25 season.