Pulses import duties may ease over poor rains

NEW DELHI: The government is considering reducing import duties on chana and yellow peas as deficient and erratic monsoon rainfall this year threatens pulse yields and prices of key legumes rise ahead of the festive season, commodity traders said.

At present, imports of chana attract a 10% duty, while yellow peas are subject to a 30% duty. Tur and urad imports are allowed duty-free until March 31, 2027. The proposed reduction in duties on chana and yellow peas would be to improve domestic availability and contain prices. Prices of chana, moong, matar and tur have risen by up to 10% over the past month, with a 3-5% spike in the past week, as concerns over crop prospects combine with higher festive demand.

“Rainfall deficiency in major producer states will have a significant impact on the yield of pulses this year,” said Suresh Agarwal, president of the Dal Mill Association.

Also Read: Foodgrain output target cut over El Nino impact

India’s southwest monsoon is ending with rainfall around 12% below normal, but the bigger concern for agriculture has been its uneven distribution. Several important cropgrowing regions have faced prolonged dry spells and moisture stress even as some areas received intense rainfall. The concern is increasingly shifting from acreage to crop yields. Overall kharif pulses acreage has remained relatively resilient despite the deficient monsoon. As of September 4, pulses had been planted over 117.13 lakh hectares, compared with 115.30 lakh hectares a year earlier. However, moong acreage was lower at 33.19 lakh hectares against 34.23 lakh hectares.

The trade is particularly concerned about rainfall conditions in major producing regions such as Maharashtra and Karnataka. While acreage may not have fallen sharply at the national level, inadequate moisture during critical stages of crop development could affect productivity and the size of the harvest.

Also Read: El Nino fears: Govt cuts foodgrain target by 2.63 MT

The possible duty reduction would mark another supply-side intervention by the government ahead of the festive season. Last week, the centre lowered import duties on several edible oils to cool domestic prices, including reducing the basic customs duty on crude palm and soybean oils to 5% and eliminating the basic duty on crude sunflower oil.