Agri ministry proposes import duty on pulses

The proposal, for a steep hike in range of 20-30%, is being discussed with revenue dept

The ministry of agriculture has proposed a steep hike in import duty for pulses in the range of 20-30%. The proposal is being discussed with the department of revenue.

This move has been triggered as traders are importing pulses and selling them at prices lower than those quoted by domestic producers.

According to market sources, traders are importing pulses from Myanmar (Burma) at prices far cheaper than that in the domestic market and selling it to state trading agencies at minimum support price (MSP). According to industry data, reportedly, traders are importing tur at Rs 3,300-3,500 per quintal from Myanmar currently, while domestic prices are ruling at Rs 4,300 per quintal.

Prices of some varieties like gram and urad are quoting even below their respective MSPs in many markets.  

Currently, the import duty on pulses is zero.

With the increase in minimum support price, pulses production has increased and so is the availability in the domestic market.

Pulses' imports are being permitted at zero duty since 2006 to ensure availability in the domestic market. India, the largest producer of pulses, imports about three million tonne of lentils every year to fulfil its domestic demand. Pulses and oilseeds are among the major components of India’s annual food import.

The central government last month once again reimposed stock limits on state holding of pulses and edible oil in order to prevent hoarding of such essential commodities by bulk users.

Meanwhile, all ministries concerned – food and agriculture have recommended for a hike in import duty of refined palm oil from existing 7.5% to 10%. The import duty on crude palm oil will continue to remain at 2.5%. This is to discourage excessive import of refined oil into the Indian market. Edible oil imports in 2013-14 crop marketing year should be around 2012-13 level of 10 million tonne, estimated officials.

According to the Economic Outlook for 2013-14, the Prime minister’s economic advisory council (PMAEC) pegged the output of pulses to be over 20 million tonne in 2013-14. In 2012-13, India had produced 18.45 million tonne of pulses, the best so far.