New Delhi. The government is considering cutting import duty to control the rising prices of pulses before the festive season. However, no official announcement has been made in this regard yet. The proposed move is aimed at increasing the availability of pulses in the market and reducing pressure on prices.
Decision may be taken on lentils and yellow peas
If the government decides to reduce the import duty then lentils and yellow peas can benefit from it. According to the current system, the duty on import of lentils and gram is 10%, while the duty on yellow peas is 30%. At the same time, import of pigeon pea and urad has been made duty free till March 2027. Gram may be kept out of the proposed relief.
Concern over production due to weak rains
This year the monsoon situation has also become a cause of concern for the prices of pulses. Between June and September, it has been reported that the major pulse producing states received 30% less rainfall than normal. There is a possibility that production of pulses will be affected as a large part of pulses cultivation is dependent on rain.
Demand increases during festivals
Consumption and demand of pulses increases during the festive season. Especially the demand for gram increases not only for domestic use but also from mills and food companies. In such a situation, the government can try to ensure additional supply in the market through imports.
pressure on pulses prices
According to the given data, food inflation stood at 5.95% in August. During the same period, the price of Pigeon pea has increased by 5.6% and the price of Urad has increased by 7.4% on annual basis. In such a situation, the possible reduction in import duty is expected to help in increasing the supply of pulses and reducing pressure on prices.