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Informist, Wednesday, Aug 7, 2024

 

By J. Navya Sruthi
 

MUMBAI – The government is likely to remove the 40% import duty on kabuli chana to check rising prices of the pulse, industry sources said. The government is monitoring chana prices and an announcement regarding a cut in customs duty can come anytime, Sathish Upadhyay, secretary, India Pulses and Grains Association, told Informist. 

 

Upadhyay said the government is prepared to remove the duty, but is just waiting for the right time. If the government feels that prices are not coming down, it is likely to reduce the customs duty or allow duty-free imports of kabuli chana, he added. "The government is very sensitive. They are watching each and every stage," he said. 

 

In Apr-May, India's imports of kabuli chana plunged to 102.3 tn from 6,380 tn during the same period last year, according to commerce ministry data.

Prices of kabuli chana today in Indore, Madhya Pradesh were 12,250-13,700 rupees per 100 kg, up from 11,010 rupees as of Jul 19, according to data from Agmarknet. Kabuli chana prices have surged on the back of robust demand ahead of the upcoming festival season even after the government removed stock limits for traders and wholesalers to ease shortage.  

 

On Jul 11, the government lifted stock limits on kabuli chana after imposing stock restrictions in June on tur and chana to prevent unscrupulous speculation and improve affordability in domestic markets. A stock limit of 200 tn was imposed on wholesalers and 5 tn on retailers. For big chain retailers, the stock limit was set at 5 tn at each retail outlet and 200 tn at depots. For millers, the stock limit was set at the last three months of production or 25% of annual installed capacity, whichever was higher. Moreover, importers were not allowed to hold imported stock beyond 45 days from the date of customs clearance. While removing the stock restrictions, the government had said that it was optimistic about the production numbers of kabuli chana in the country.

 

Chana production for 2023-24 was pegged at 11.6 mln tn, lower than 12.3 mln tn a year ago, mainly due to erratic rainfall during last year's kharif season which delayed sowing of this rabi crop. An increase in the number of heatwave days this summer also hit the harvesting of chana in India.   End

 

Edited by Tanima Banerjee

 

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