Expectation of extension of duty free import period of Urad

30-Jan-2025 01:16 PM

It looks like the pulses industry and trade sector are closely monitoring the government's decisions regarding the extension of duty-free import periods for various pulses like Urad, Tuvar, yellow peas, Desi gram, and others.

Based on the current trends, there's cautious optimism about the extension of the duty-free import period for Urad and Tuvar, given that it has already been extended for Tuvar until March 2026.

The uncertainty is especially notable for yellow peas and Desi gram, as their imports have already been high, and the Rabi season's new crop is expected to impact the dynamics.

The softening of prices and the potential for a re-imposition of high import duties on yellow peas and Desi gram is raising concerns.

Analysts seem to believe that the government may stop or limit imports of these to protect domestic producers.

For lentils, the uncertainty continues as critics are divided on whether the duty-free status will be extended, given that prices have remained relatively stable for a while.

However, with the extension already provided for Tuvar and the substantial import of yellow peas, it wouldn't be surprising if the government takes a cautious approach towards further duty-free imports to safeguard domestic production.

The significant import of yellow peas in particular—driven by the removal of the 50% customs duty in December 2023—is an interesting development.

It indicates that the Indian market has a significant dependency on imports for certain pulses, and if the duty is reinstated, there could be a shift in market dynamics.

What’s your take on the situation? Are you involved in the pulses trade, or following this for other reasons?