Import Duty on Pulses Likely to be Cut

New Delhi: Concerns have arisen that pulse production during both the Kharif and Rabi seasons could be adversely affected due to deficient Southwest Monsoon rainfall and the likelihood of the El Niño weather pattern persisting for several months. Consequently, this could lead to a surge in prices.

To boost domestic supply and availability while curbing price spikes, the Central Government may seriously consider reducing import duties on pulses. It is worth noting that import duties on edible oils have already been reduced by 5 and 10 percentage points.

It is important to note that the import of Moong is currently banned, while Tur and Urad are exempt from customs duty; therefore, a decision to cut duties would not impact these three pulses. On the other hand, a basic import duty of 10% applies to domestic-type Chana (gram) and Masoor (lentil), and 30% to yellow peas; these rates could be reduced or eliminated. A decision regarding duty rate changes for Chana and yellow peas is expected soon.

The deadline for duty-free imports of Tur and Urad has already been set for March 31, 2027. If customs duties on Chana and yellow peas are reduced, imports could see a significant increase. India primarily imports Chana from Australia and Africa, and yellow peas from Canada and Russia, while the majority of Masoor imports come from Canada and Australia. Additionally, substantial quantities of Urad are imported from Myanmar and Brazil, and Tur from Myanmar and African nations.

Over the past month, domestic market prices for Chana, Moong, peas, and Tur have risen by approximately 10%. Of this, a rise of 3–5 percent has occurred in the last week alone. Pulse production is likely to decline this time.