The Food Ministry is in favour of a 7.5 per cent import duty on pulses against 10 per cent suggested by the Commission for Agriculture Costs and Prices (CACP) to boost the domestic production.
India, the largest producer of pulses, imports about three million tonnes of lentils every year to fulfil its domestic demand. Pulses imports are being permitted at zero duty since 2006 to ensure domestic availability.
“The Food Ministry has taken note of the CACP’s recommendations on pulses. It is in favour of raising the import duty to 7.5 per cent,” a senior government official told PTI.
The import duty hike is necessary at this point to protect the domestic farmers because imported pulses like tur have become cheaper compared to domestic pulses, especially after the hike in the minimum support price (MSP).
The Government has made some progress in increasing the pulses production through higher MSP in the last few years and the Agriculture Ministry is concerned over pulses sowing if cheap imports flood the market and distort prices, he added.
According to industry data, traders are now importing tur at Rs 3,300-3,500 per quintal from Myanmar, while domestic prices are ruling at Rs 4,300 per quintal.
CACP, which recommends support price for agriculture commodities, had recommended 10 per cent import duty on pulses in its report on kharif 2013-14 crops to boost the local output.