India extends duty-free import of tur, urad dal until March 2025

Days after allowing duty-free import of masoor (lentil), the Indian government on Thursday extended by another year the free import policy, without quantitative restrictions, on tur (pigeon pea) and urad dal (black matpe) till March 2025, potentially helping higher domestic supply and keeping prices under control.

“The free import policy of urad and tur stands extended up to March 31, 2025,” the Directorate General of Foreign Trade (DGFT) said in a notification. The free import policy for these pulses was valid until March 2024.

The government had allowed the import of tur, urad and moong dal under the ‘free category’ with effect from May 15, 2021 and it was valid till October 31, 2021. Subsequently, it got extended as domestic production was hit with lower rainfall in key producing states.

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The Centre on December 21 extended the import duty exemption on masur dal (lentils) by another year till March 31, 2025. Import of lentils are being allowed duty-free to help contain inflation. In the normal course, imports attract 30 per cent Customs duty. “The extension of duty exemption by an year will benefit the importers and will boost the supplies,” Bimal Kothari, Chairman, India Pulses and Grains Association had said.

Rabi area down

The imports of masur have seen a considerable increase in the current financial year with a section of consumers of tur dal shifting to masur dal in the recent months. Pulses led by tur dal have turned expensive this year with the erratic monsoon impacting the domestic output and fuelling food inflation. According to the trade estimates, the high price of tur dal has seen demand destruction of around 15-20 per cent with consumers shifting to other pulses.

The overall acreage under the rabi pulses was down at 137.13 lh over 148.53 lh a year ago, largely on account of dip in chana acreages. According to agriculture ministry estimates, tur production is likely to rise from 33.12 lakh tonnes (lt) in kharif 2022 to 34.2 lt in kharif 2023, though it is way off the target of 43 lt fixed for current year. Experts doubt the production estimates as there was a decline in acreage.

The ministry has estimated main kharif season urad production this year to drop to 15.05 lt from 17.68 lt previous kharif. In total urad production the kharif season contributes 75 per cent while Rabi crop provides another 25 per cent.

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