Traders wary over duty on import of pulses

Speculations on re-imposition of import duty on pulses in April next year has triggered concerns among the importers' community in the country.

In this reagrd, the Pulses Importers' Association has requested the Centre to inform it in advance, in case, there is any extension in the import duty relaxation period.

In its letter to the Central Government, the association said: "Fear of import duty kills interest of importers, who are reluctant to book pulses' imports for the first quarter of next year."

The Centre had relaxed import duty three months back up to March 31, 2007, slashing it to zero from 10 per cent in order to control the surging rates of pulses.

Market sources said that there would be a direct impact on the prices, if the same duty was reimposed.

However, they added that they were unaware as to how much duty would be imposed and that the picture would be clear only when the government came out with new circulars on the issue.

Commodity experts agreed to the fact that the landing cost would go higher once the 10 per cent duty came back. But they maintained that if the current scenario in pulses continued, duty imposition would have no major impact.

Over the last one month, pulse prices have softened in the domestic market.

The association has also requested to include soyabean seed under pulses category. According to it, dal made from soyabean seed is high in protein and can be introduced to enhance pulses availability in the country.

Regarding imposition of Value Added Tax (VAT) in the next financial year in the states, where it was not implemented so far, the association asked for clear guidance on the matter.

The letter added that VAT was not implemented in most countries, which were major importers of food material.