NEW DELHI:The Commission for Agricultural Costs and Prices (CACP), which advises the government on price policy for major agricultural commodities, has recommended an import tariff of 10% on pulses to promote local production.
Currently, pulses like moong and tur have an import parity price that is below the minimum support price (MSP). Importers and traders say that with domestic prices crashing, the government should allow exports to ensure remunerative prices to farmers.
India is the largest consumer (18.5-20 million tonne), producer (15-18 million tonne) and importer (2.5-3 million tonne) of pulses, an important constituent of protein for most vegetarians in the country. "Especially in tur dal, we have noticed that pulses imported from Myanmar are cheaper than the domestic production. Hence, we have recommended to the Ministry of Agriculture to impose a 10% import duty," said Ashok Gulati, chairman, CACP.
Pulses imports are permitted at zero duty since 2006 to ensure availability at reasonable prices. Pulses exports from India, however, are prohibited since 2006 except for kabuli chana and over 10,000 tonne of organic pulses and lentils per annum.
Pulses importers said the revision of the import duty was a call to be taken by the revenue ministry in consultation with the consumer affairs ministry. "Rather than increasing the import duty, the government should allow exports of pulses to ensure that farmers get a good price," said Pravin Dongre, chairman, India Pulses and Grains Association. He said domestic prices were extremely low with chana selling below the MSP of Rs 3,000 a quintal. The harvesting of new chana crops in Rajasthan and Madhya Pradesh have further crashed domestic prices, said traders at the Delhi's Naya Bazaar mandi.
Consistent efforts by the government have led to a 2.9% increase in pulses production in 2012-13 at 17.6 million tonne from the past year. However, production of kharif pulses is estimated to decline by 9.6% to 5.5 million tonne, with a 3.8% increase in tur, a fall in urad by 1.7% and in moong by a steep 22.1%. According to Gulati, the two important trade policies (MSP and import) were inconsistent and had to be dovetailed to protect and push farmers to grow more pulses. "Imported tur from Myanmar is beingquoted at Rs 3,200 a quintal and we are giving an MSP of Rs 4,300 a quintal to our farmer. What will prevent traders to import at cheaper rates and sell at high prices in the market?" he said.
According to traders and brokers, raw tur was currently being imported from Myanmar and futures contracts were being signed with Malawi, Mozambique, Tanzania, Kenya for August-September delivery. "Market prices are stable and can see a further correction," said Vasad-based Mitesh Patel who processes and sells tur dal under the Lakshmi Toor dal brand. Compared to wheat and rice, the production of which has clocked an all-time high, pulses are a major challenge for India in terms of meeting its domestic demand.
Source:-economictimes.indiatimes.com
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