The Indian government is considering ending the duty-free import of masur (lentil) before the March 31 deadline set for importers to strengthen domestic stock. An official notification on the imposition of duty is expected to be issued next week after approval from an inter-ministerial panel, sources revealed. It is yet to be confirmed whether a duty will also be levied on chana (gram).
“There is a concern about the impact on farmers in Bihar, one of the major masur producers, as the crop is expected to arrive soon. The government is keen on supporting farmers, especially with the upcoming Assembly polls in the state,” said a source, highlighting the importance of maintaining stable prices to avoid farmer dissatisfaction.
The Ministry of Agriculture has expressed worry about a potential drop in masur prices upon crop arrival in the market. The minimum support price (MSP) for masur has been fixed at ₹6,700/quintal for the upcoming season, higher than the previous year’s ₹6,425. However, current market prices range from ₹5,640/quintal in Madhya Pradesh to ₹6,500 in Uttar Pradesh. Imported masur is reportedly selling at a lower price than domestic produce.
To prevent a price crash in April, the government is contemplating the imposition of customs duty on masur imports, with around 5.5 lakh tonnes of masur stock already available with private and public sector agencies. Import figures suggest that total masur imports could reach 10.93 lakh tonnes between April and December 2024, lower than the 16.81 lakh tonnes recorded in the same period the previous year.
The government had previously reduced the basic import duty on masur for the US and allowed duty-free imports for other nations in 2021. India primarily imports masur from major producers like Canada and Australia. The current situation has raised concerns about the impact on domestic prices and the need to maintain a balance between imports and domestic production.
