Serious consideration on imposing customs duty on import of lentils

07-Feb-2025 10:46 AM

The government of India is currently considering the possibility of imposing customs duty on the import of lentils, despite the fact that duty-free imports were approved until March 31, 2025.

Sources suggest that an inter-ministerial committee could approve this change soon, potentially leading to a notification about the imposition of the duty in the coming days.

The potential move comes in response to concerns over falling prices of lentils, which have been impacting domestic farmers.

The Union Agriculture Ministry is particularly concerned about the pricing of lentils, especially with the new crop expected to arrive in the coming months.

To protect farmers and ensure better prices, the government may impose a duty on imports to reduce the inflow of cheaper lentils and provide some stability to the domestic market.

Lentils, including yellow peas and Desi gram, are produced in large quantities in states like Madhya Pradesh, Uttar Pradesh, and Bihar.

With assembly elections scheduled in Bihar this year, the government is likely keen on supporting local lentil producers to ensure favorable prices for them.

However, the domestic price of lentils is still lower than the minimum support price (MSP), which could further exacerbate the issue if import prices continue to undercut the local market.

Import statistics show a decline in lentil imports in 2024 compared to the previous year, but still, a significant amount of lentils were imported between April and December 2024.

As stockpiles are reportedly large, trade analysts believe that if duty-free imports persist, the domestic market may experience even lower prices by April, worsening the situation for local farmers.

If the duty is imposed, it could help reduce imports and provide some relief to domestic lentil producers by making their products more competitive in the market.