30 per cent import duty on chana, masoor to control cheap imports

The government has imposed 30 per cent import duty on chickpeas (chana) and lentils (masoor) effectively immediately on Thursday. This decision has been taken to protect the interest of farmers. 

India is world’s largest importer and consumer of pulses. The government is expecting the production of chickpeas and lentils to be on higher side during upcoming Rabi season. A rise in chana production will help the country to reduce pulses imports over the next 2-3 years. 

In the international market, the price of pulses is comparatively low compared with the domestic market. This has led to an alarming situation as the imports have grown substantially and has corroded the prices in the domestic market affecting farmers.

To curtail this situation the government has initiated the import duty to protect farmers' income. We expect this to lead to price parity in the domestic market. As a result, we see demand for fertilizers to increase, thereby improving the topline of fertilizer companies. In FY17, the total import of pulses has increased by almost 20 per cent to 5.67 million tonnes.

In February 2017, the international price of lentils stood at nearly around Rs. 4,300 per quintal against Rs. 6,600 in the wholesale domestic market. Further, the international price of chickpeas stood at nearly around Rs. 5,300 against Rs. 6,900 in wholesale domestic market. On Friday, the price of chana dal has jumped by around 3 per cent by touching high of Rs. 4,356 per quintal.