Amid concerns over a likely decline in chana output, the government has removed the import duty on desi chana (Bengal gram) till the end of FY25.
Desi chana used to attract a 66% import duty, a move aimed at encouraging domestic production.
The government also extended dutyfree imports of yellow peas, for the second time, till October 31. In December last year, the government had allowed dutyfree imports of the pulses variety, while an import duty of 50% was earlier imposed in 2017.
Officials had earlier said there was no major concern about chana output as the agriculture ministry indicated that the crop yields have not come down even though the total output is currently pegged lower at 12.1 million tonne (MT) for the 2023-24 crop year (July-June) compared with 12.2 MT in the previous year.
However, trade sources expect the output of the key pulses variety to be way below the official estimates. Trade sources said the market prices of chana (gram), a vital pulses variety which has share of close to 50% in the country’s output, are ruling in the range of Rs 6,000-Rs 6,100 per quintal against the MSP of Rs 5,440 per quintal for the 2024-25 season due to fears over a decline in output.
With demand for chana rising from state governments for distribution through their welfare schemes, officials said there is a strain on the buffer now in terms of availability. Currently, farmers’ cooperative Nafed holds a pulses variety stock of around 0.6 MT below the buffer of 1 MT.
Given the gap between demand and supply, retail pulses inflation has been high for the last several months and was reported at 17.71% in March, while chana reported a price rise of 14.31%.