The government has recently announced an extension of the duty-free urad imports until March 31, 2026, citing a shortfall in domestic production. This decision comes as a relief to many in the agricultural sector, especially considering the challenges faced in meeting the country’s urad demand. The Director General of Foreign Trade (DGFT) issued a notification on Monday, signaling the continuation of duty-free urad imports to bridge the production gap.
Bimal Kothari, the chairman of India Pulses and Grains Association, expressed his anticipation for this extension, emphasizing the importance of maintaining a steady supply of urad amidst lower domestic production. With the current estimates projecting urad production at 17.99 lakh tonnes for the 2024-25 season, a decrease from the previous year’s 20.91 lakh tonnes, the need for imports is evident. Kothari highlighted that the shortfall in domestic production, with a requirement of around 30 lakh tonnes and production barely exceeding 20 lakh tonnes, necessitates imports from countries like Myanmar and Brazil.
“Myanmar has had a good crop, and we anticipate a significant volume of urad imports from Brazil, around 1.5 lakh tonnes,” Kothari stated. The ease in urad prices, hovering slightly above the Minimum Support Price (MSP) and showing stability, further underscores the necessity of extending duty-free imports. This move not only addresses the current production shortfall but also ensures a consistent supply of urad in the market.
Expanding Imports and Policy Changes
In the current financial year, urad imports from April to January have reached 6.73 lakh tonnes, showing an increase from the previous year’s 5.10 lakh tonnes during the same period. This surge in imports reflects the growing reliance on external sources to meet the country’s urad demand. Additionally, the government has extended the import window for tur (Red gram) until March 31, 2026, further emphasizing the importance of securing pulse imports to maintain market stability.
Moreover, the recent notification from the DGFT also includes an extension of duty-free imports of yellow peas. The policy now allows for the import of yellow peas without the minimum import price condition and port restrictions, provided the consignments are registered under the online import monitoring system. This change, effective immediately, aims to streamline the import process and facilitate the import of yellow peas until May 31, 2025.
The extension of duty-free urad imports and yellow peas imports signifies a proactive approach by the government to address the challenges posed by domestic production shortfalls. By allowing for increased imports and relaxing import regulations, the government is ensuring a consistent supply of essential pulses in the market. This decision not only benefits the agricultural sector but also contributes to maintaining price stability and meeting consumer demand for urad and yellow peas.
In conclusion, the government’s move to extend duty-free imports of urad and yellow peas until March 31, 2026, is a strategic response to the challenges faced by the agricultural sector. By prioritizing the stability of the pulse market and ensuring a steady supply of essential commodities, this decision underscores the government’s commitment to supporting farmers and meeting the country’s food requirements.
