Considering low stock and high price, consideration on making import of Kabuli chana duty free

17-Aug-2024 12:56 PM

New Delhi. Due to low stock, there is limited arrival of Kabuli chana in the markets, while its price is high due to strong domestic and export demand.

Its demand is expected to increase in the festive season as well as the Lagnasara season. In view of this, the Central Government is considering making the import of Kabuli chana duty free.

A decision in this regard is likely to be taken next month (in September). It is known that at present, a total customs duty of 44 percent is applicable on Kabuli chana with a pool import duty of 40 percent and a surcharge of 10 percent on it, which can be postponed for a few months.

According to senior official sources, serious consideration is being given to removing the customs duty on its import to increase the supply and availability of Kabuli chana in the domestic sector and to curb the rise in prices and a notification for this can be issued in the first week of September.

Despite many measures and efforts, the price of Kabuli chana has jumped to a very high level. There is a possibility of tremendous demand before the festive season,

due to which its price may increase even further. The decision of the government can have a psychological effect on the domestic market.

There is an atmosphere of ups and downs in the prices of Desi chana as well, while its price is already much higher than the minimum support price. There is a strong demand for it from gram flour manufacturers. The market can remain bullish in the coming times as well.

Although a good amount of Kabuli chana has been exported from India, but now due to the high domestic market price, the export performance is likely to weaken because the arrival of its new goods has started in countries like Russia,

Canada and America. In such a situation, if duty free import is allowed, then the pressure on the domestic market may increase.

According to official data, a total of 99,157 tonnes of chickpeas were exported from India during the financial year 2023-24 (April-March),

while its imports from outside the country also reached 93,648 tonnes. On the contrary, in the financial year 2022-23,

the export of chickpeas from the country increased to a height of 1,21,143 tonnes, but its imports into the country were only 1735 tonnes.