Centre aims to protect farmers, refuses to slash import duty on chana in India

Published 2020년 10월 16일

Tridge summary

The Indian Central government has no plans to reduce the 60% import duty on chana (gram), despite traders' requests to lower it to 35-40% to prevent a potential shortage. The high duty rate is aimed at preventing market prices from falling below the Minimum Support Price (MSP) of Rs 5100 per quintal, which could negatively impact farmers. This decision is made as India prepares for the sowing season, with chana prices currently at around Rs 5300 per quintal and expected to rise to Rs 6000 per quintal due to decreasing pipeline stocks. This situation arises from increased disposal of chana as part of the Garib Kalyan Package for Covid-19 relief and reduced domestic production.

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Original content

Despite strong demand from a section of the traders, the Central government is not looking to lower the import duty on chana (gram), the biggest pulses grown in India immediately, to avoid giving any negative signals to farmers just ahead of the sowing season that will start in next few weeks. Chana is majorly imported from Australia and Tanzania and it attracts an import duty of 60 per cent. A section of the traders is demanding a reduction in import duty to around 35-40 per cent to tide over any shortage of the commodity as the new crop will start hitting the market only around mid-February, while they claim that pipeline stocks is on the verge of exhaustion due to heightened disposal as part of the Garib Kalyan Package for Covid-19 relief and also open sales. However, top official sources said that the thinking in the government is that any duty reduction at this stage could impact market sentiment and pull down prices below the Minimum Support Price (MSP) of Rs 5100 per ...

Source: Business Standard