The basic customs duty has been reduced from 10% to zero. Lentils (Masur) is sourced from or exported from countries other than the US In addition, the basic customs duty has been reduced from 30% to 20% on Masur originating in or exported from the US. Agricultural Infrastructure Development Cess on masur has been reduced from the current rate of 20% to 10%.
Bimal Kothari, Vice President of IPGA, said: “The government should not have lowered the import duty as the prices of lentils are not going to go down. It will not benefit any of the stakeholders in India except Canadian farmers, Canadian exporters, Australian farmers, Australian exporters and multinational companies. We will not see a corresponding 22% price reduction on lentil prices. The price of lentils can simply be reduced by Rs 1–2 / kg and not Rs 13–14 / kg. Following this notification from the Government, Canadian and Australian exporters have already increased the price by USD 75/80 per metric ton. ”
IPGA said that the policy is definitely not in the interest of the Indian consumer, the Indian farmer, the Indian Pulse trade, and not even the government. “In fact, the government will lose substantial revenue due to the reduction of Masur Dal’s import duties.
A similar policy was announced in 2020 last year and the import duty was lowered from 33% to 11%. IPGA drew the attention of the Government of India, the demerits of such a policy and after 3 months it increased again to 33%. We urge the government not to take such harmful measures that it will seriously affect farmers, consumers and trade, ”Kothari said.