India’s move to remove the 40% import duty on desi chana has caused international prices of the commodity to surge by 7-10% within a day of the announcement on Friday. This decision, made during the ongoing sowing season in Australia, will likely motivate farmers there to increase the acreage and production of Bengal gram for export to India.
“The Australian farmers will sow chana till the end of May.India’s decision of removing import duty will encourage them to sow more chana for the Indian consumers,” a prominent processor of pulses who requested not to be identified told ET.
However, some in the pulses industry believe that the removal of the import duty on desi chana may discourage Indian farmers from sowing chana next season, thereby increasing India’s reliance on imports.
On Friday, India removed the 40% import duty on desi chana and extended the duty-free import of yellow peas. As a result, international prices surged to $800 per tonne on Saturday from 720-750 per tonne.
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“The Australian chana will start coming to India from November clashing with our rabi sowing period,” said a prominent Mumbaibased importer, who also requested not to be named.
While the central government has projected India’s 2023-24 chana production to be 12 million tonnes, trade estimates suggest it will be around 8 million tonnes, compared to India’s requirement of more than 9 million tonnes. India can anticipate importing some chana from Tanzania after August, followed by Australia.
However, the industry is astonished by the government’s decision to extend duty-free import of yellow peas till October, as approximately 1.8-2.0 million tonnes of yellow peas have already been imported into the country, according to trade estimates.
“Both decisions have been taken by looking at the shortage in the domestic market and the interests of the consumers,” said pulses processor Nitin Kalantry.
“The Australian farmers will sow chana till the end of May.India’s decision of removing import duty will encourage them to sow more chana for the Indian consumers,” a prominent processor of pulses who requested not to be identified told ET.
However, some in the pulses industry believe that the removal of the import duty on desi chana may discourage Indian farmers from sowing chana next season, thereby increasing India’s reliance on imports.
On Friday, India removed the 40% import duty on desi chana and extended the duty-free import of yellow peas. As a result, international prices surged to $800 per tonne on Saturday from 720-750 per tonne.
Also Read | Is Chinese garlic being smuggled into India? Why customs has sounded high alert
“The Australian chana will start coming to India from November clashing with our rabi sowing period,” said a prominent Mumbaibased importer, who also requested not to be named.
While the central government has projected India’s 2023-24 chana production to be 12 million tonnes, trade estimates suggest it will be around 8 million tonnes, compared to India’s requirement of more than 9 million tonnes. India can anticipate importing some chana from Tanzania after August, followed by Australia.
However, the industry is astonished by the government’s decision to extend duty-free import of yellow peas till October, as approximately 1.8-2.0 million tonnes of yellow peas have already been imported into the country, according to trade estimates.
“Both decisions have been taken by looking at the shortage in the domestic market and the interests of the consumers,” said pulses processor Nitin Kalantry.
