Falling inflation, prices: Panel calls for ban, curbs on import of major pulses

The CACP’s proposal on banning/restricting the imports of the three major pulses comes ahead of the upcoming 2025-26 rabi cropping season.

The Centre, on Wednesday, fixed an MSP of Rs 5,875 and Rs 7,000 per quintal for the chana and masoor crops, based on the CACP’s latest rabi price policy report.

India imported a record 72.56 lakh tonnes (lt) of pulses worth $5.48 billion during 2024-25 (April-March). The 72.56 lt included 21.67 lt of yellow/white peas (mainly from Canada and Russia), 16.14 lt of chana (from Australia) and 12.19 lt of masoor (from Canada, Australia and United States).

The Centre had, in December 2023, scrapped the import duty on yellow/white peas, while doing the same for chana in May 2024.

These measures were taken in view of high food inflation. Annual consumer price inflation in pulses stood at double-digits for 15 consecutive months from June 2023 to August 2024 on the back of a poor crop.

But with production recovering in 2024-25 and good monsoon rains this year, there has been a softening of both food and pulses inflation to minus 0.7 per cent and minus 14.9 per cent respectively in August. That could prompt a reversal of the present import policy.

The Modi government did re-impose a 10 per cent duty on desi (small-sized) chana from April 2025, although duty-free imports of yellow/white peas have been allowed till March 31, 2026.

“The government should take a timely decision and implement the CACP’s recommendation so that farmers are encouraged to sow pulses in the coming season,” said Nitin Kalantri, a leading Latur (Maharashtra)-based dal miller.

Yellow peas, a cheap substitute for chana, is currently being imported from Canada at a landed price of around $290 per tonne or Rs 2,570 per quintal in Mumbai, Kandla and Mundra. Adding Rs 200 towards port handling, bagging, transport (to a nearby warehouse) and other expenses would take the total to below Rs 2,800 per quintal – a fraction of the ruling Latur market price of Rs 5,400 for chana and its announced MSP of Rs 5,875.

The landed prices are similarly low, at $480-490 per tonne, for imported chana and masoor. These prices, in combination with unrestricted imports, makes it all the more difficult for Indian farmers to realise prices anywhere close to their MSPs.

From the homepage

‘Pakistan will have to consider if it wants to remain part of globe’: Army Chief warns against testing India’s resolve

‘Leader vanished, no remorse, it shows his and party’s mental state’: Madras High Court tears into Vijay’s TVK, faults govt leniency

Several dead in PoK unrest: The protesters’ demands, how Pakistan govt responded