Duty-free import of pulses may continue, export ban to stay

To augment domestic supply of pulses and stabilise prices, the government may soon take the twin-step of allowing duty-free import of the commodity for another one year and extend the ban on exports till March 31 next year.

"Duty-free import of pulses and the export ban on the same would be allowed for another one year to ensure sufficient supplies," a senior Consumer Affairs Ministry official said. Both will expire on March 31, 2010, if not extended. More than four years ago in June 2006, the government had removed 10 per cent import duty on pulses and banned export for one year. The decisions were extended from time to time.

The government may also continue to supply 400,000 tonnes of pulses at subsidised prices through ration shops till March 31 next year, he said.

Besides, the PSUs and co-operatives, which import pulses but incur losses in the process, can continue to claim reimbursement of 15 per cent of their losses for another one year. MMTC, STC, PEC, Nafed and NCCF import pulses on behalf of the government.

The official said all proposals related to pulses would be discussed next week at the meeting of the Empowered Group of Ministers on Food, headed by Finance Minister Pranab Mukherjee.

"The government may extend the ban on export of pulses, except for kabuli chana for one more year," he added.

At present, the retail prices of key pulses such as tur are ruling high at over Rs 75 a kg in most places due to a demand-supply mismatch.

According to the official data, the PSUs and agri-cooperative firms have so far imported 544,000 tonnes of pulses this fiscal.

India imports mainly from Mynamar, the US, Canada and Africa. Both private sector and PSUs share equally in the country's estimated 2-3 million tonnes of pulses import.

Pulses production in the country is stalled at 14-15 million tonnes against an annual demand of 17-18 million tonnes.