No plans to levy import duty on pulses now, says Pawar bl-premium-article-image

Vishwanath Kulkarni Updated - July 16, 2013 at 09:15 PM.

Expresses concern over pricey vegetables; grain exports to continue

The Government has no immediate plans to impose any import duty on pulses, Agriculture Minister Sharad Pawar said on Tuesday. He was speaking to reporters on the sidelines of the 85{+t}{+h} Foundation Day of the Indian Council of Agricultural Research.

The confusion among pulses traders was triggered following reports that the Food Ministry was in favour of imposing a 7.5 per cent import duty.

The Commission for Agriculture Costs and Prices (CACP), in its recommendations, had suggested imposition of a 10 per cent on duty on imports to boost domestic production.

Currently, there is no duty and importers can bring in pulses duty free till March 31, according to a Finance Ministry notification issued in March.

The pulses trade has opposed any move to impose import duty.

However, the trade wants the Government to open up exports to help stabilise prices that are currently bearish and below levels of the minimum support price.

The recent 10 per cent decline in rupee against the dollar has made pulses imports costlier and has reduced the price differential between domestic and imported varieties.

'Pricey veggies worrisome’

India’s pulses imports stood at around three million tonnes in 2012-13. In value terms, they were estimated at over $1.5 billion. Pawar said the current trend of vegetable price rise was worrisome, but expects it to ease with improving supplies in the weeks ahead.

Prices of almost vegetables including tomato, potato and onion have shot up in recent weeks across the country on excess rains affecting crop in key-growing regions and disruption in supplies, mainly from Himachal Pradesh and Uttarakhand.

“This is a temporary situation about vegetable prices. It is definitely worrisome,” he said.

Pawar said that the supply situation was expected to improve in the coming weeks.

The Minister said that onion supply was expected to improve after three weeks with the arrival of the new crop from Maharashtra, Gujarat and Rajasthan.

The recent rising trend in vegetable and food prices had fuelled food inflation, which rose to 9.74 per cent for June from 8.25 per cent in May.

Further, Pawar said the monsoon so far, has been favourable this year and the current trend in sowing of kharif crops could help the country break the last two year’s records in food production.

This is provided the monsoon continues to be good as projected by the Indian Meteorological Department, he said.

Replying to a query on whether the Government would keep open the exports of rice and wheat in view of implementation of food security scheme, Pawar said that the stock position as of now was extremely good.

“Unless we export, there will be problem and there will be damage,” Pawar said, adding that foodgrains required for food security had been kept safely.

vishwanath.kulkarni@thehindu.co.in

Published on July 16, 2013 09:04