Food, agri ministries at loggerheads over pulses import duty

Food and agriculture ministries are at loggerheads over the issue of pulses import as the former has proposed continuation of duty-free import of lentils beyond September to stabilise prices, while the latter wants 10 per cent tax to protect the interest of farmers.
The current zero duty on pulses ends on September 30.
The government has been extending the time for duty-free import of pulses to meet annual domestic shortage of over four million tonnes. The country produces 18-19 million tonnes.
In last few weeks, retail pulses prices have shot up to Rs 150 per kg across the country as domestic production fell by nearly two million tonne in 2014-15 crop year due to unfavourable weather conditions.

"To augment domestic supply and check prices, the Food and Consumer Affairs Ministry has moved a cabinet note proposing continuation of duty free import of pulses beyond September this year," according to sources.
It has said imposition of import duty on pulses would make overseas purchase of lentils expensive not only for private traders but also for the government-run agencies.

The government has started importing pulses via state-run MMTC after a gap of two years to boost domestic availability. MMTC has already tendered for import of 5,000 tonnes each of tur and urad dal for further distribution to state governments at subsidised rates.

However, sources said the Agriculture Ministry has opposed the Food Ministry's proposal saying that the move would discourage farmers from growing pulses here.
"The Agriculture Ministry has suggested 10 per cent import duty on pulses to boost domestic production by encouraging farmers to bring more irrigated areas under pulses," sources said.
The ministry argued that such a move would indirectly help save fertiliser subsidy as pulses are nitrogen fixing and help in stabilising production, they added.
Pulses production is estimated to have fallen to 17.38 million tonnes in 2014-15 crop year (July-June) from 19.25 million tonnes in the previous crop year due to deficient monsoon last year and unseasonal rains.

India, the world's biggest pulses importer, purchased 4.58 million tonnes of pulses in the 2014-15 fiscal from the overseas market as against 3.17 million tonnes in the previous year.