Govt extends free-import policy for key pulses by a year

To augment domestic supplies of pulses and stabilise their retail prices, the government on Tuesday extended the ‘free-import’ policy for two varieties — tur and urad — by a year to the end of FY23. Under the regime, introduced in May last year, specified pulses can be imported without any quantitative restrictions.

“The measure will ensure seamless import of these pulses to augment the domestic availability. It is expected that sufficient availability of these pulses will make them available to the consumer at affordable prices,” according to a statement by the department of consumer affairs (DoCA). Via a notification issued on May 15, 2021, the government had allowed import of pulses varieties such as tur, urad and moong under a ‘free’ import regime till October 31, 2021. Subsequently, the regime for tur and urad imports was extended till March 31, 2022.

The official statement noted that unrestricted import of pulses signals a stable policy regime which will benefit all the stakeholders. India is expected to import around 7 lakh tonne of tur in 2021-22.

According to DoCA, the average retail prices of tur declined to Rs 103 per kg from Rs 105.46 per kg reported a month back. Average retail prices of urad during the same period declined to Rs 104.3 per kg from Rs 108.22 per kg a month back.

According to the second advance estimates for 2021-22 season, the government had pegged the tur output at 4 million tonne (mt), down from previous year’s 4.32 mt. Traders say that excessive rains during the flowering stage has reduced this year’s tur output by around 20%. The urad production is estimated at 2.66 mt for 2021-22 season, which is 19% more than the previous year.

For augmenting domestic supplies, India signed a memorandum of understanding (MoU) with Mozambique for import of 2 lakh tonne of tur or arhar annually for five years, when the retail prices of tur skyrocketed to Rs 200 a kg in 2016.

This MoU was extended for another five years in September, 2021. In 2021, India entered into MoUs with Malawi and Myanmar to import 50,000 tonne and 1,00,000 tonne of tur per annum, respectively, till 2025. India met 10–12% of its domestic consumption through imports. India’s pulses production is estimated to be 26.96 mt in 2021-22.