Growers are expected to harvest 1.8 million more tonnes of pulses than last year, the majority destined for export markets
SYDNEY (Reuters) — Australian farmers are set to churn out record harvests of pulses such as chickpeas and lentils after they rushed to take advantage of surging prices due to shortages in India.
Prices of the key pulses, used to make dishes such as curries, and also growing in popularity globally due to their high-protein content, soared above Cdn $903 per tonne earlier this year, according to National Australia Bank.
Although markets have since pulled back to around $691 per tonne, they are still well above longer term averages of $296 to $494, said Nick Goddard, chief executive of industry body Pulse Australia.
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The rise, largely driven by production shortfalls in India due to back-to-back droughts and irrigation problems, prompted Australian farmers to plant more pulse crops. A harvest of around four million tonnes is expected this year compared to 2.2 million last season, according to Pulse Australia.
That should help cement Australia’s position as a top five global exporter of pulses alongside nations such as Canada and China at a time when it is looking to rebalance its economy as a mining investment boom fades.
“(Prices) were double where they normally were,” said Phil Christie, a farmer in southeast Australia, explaining why he chose to plant 20 percent more chickpeas this season.
Australia typically exports two-thirds of its chickpeas to India, with most of the remainder sold to Bangladesh and Pakistan. Little is consumed locally.
As well as chickpeas and lentils, pulse crops include field peas, lupins and fava beans.
Prices are expected to fall toward year-end as the Indian growing season gets off to a strong start and as producers such as Canada and Russia ramp up exports.
But Pulse Australia has forecast export earnings from this yearwould likely hit a record A$1.9 billion, up from $1.2 billion in 2015.
Goddard cautioned some farms in the state of New South Wales had recently had crops ruined by excessive rainfall, although he said the overall outlook remained strong.
“Even if we lose a bit because of the rain, it’s still going to be a very good year,” he said.
