In the wake of persistent inflation, the Indian government has announced an extension of the exemption for tur and urad dal imports until 31 March 2025. This decision, conveyed through an order from the Director General of Foreign Trade, mirrors the recent extension of the import duty exemption for masur dal until the same date, an adjustment from the previous deadline of 31 March 2024.
This move arrives against a backdrop of elevated food inflation in India, marked by a surge to 8.7 per cent in November from 6.61 per cent in October, with pulses registering a 20 per cent inflation rate during the same period, based on Statistics Ministry data.
The government, confronted with heightened food inflation concerns as national elections approach, has taken several measures. These include extending the PM Garib Kalyan Anna Yojana, providing 5 kg of grains monthly to impoverished households, until 2028. Additionally, administrative actions have been initiated to stabilise prices of essential commodities such as sugar, rice, pulses, vegetables and edible oils.
Factors contributing to the rise in tur prices include a domestic production shortfall over the past year. However, recent governmental interventions have begun to impact prices positively, evidenced by a decline in tur prices from Rs 156.5 to Rs 154 per kg within a month.
In response to anticipated production shortages due to erratic weather, the government extended the duty-free import policy for tur and urad until 31 March 2024, earlier this year. Furthermore, restrictions on minimum import prices and port constraints for yellow peas (tur) were lifted until the end of the current financial year, aiming to facilitate trade.
To address supply concerns, the government permitted limited stock holdings of tur and urad by traders, releasing tur from national buffer stocks to counter price escalation.
In an effort to make pulses more accessible, ‘Bharat Dal’—packaged as chana dal—is being provided at subsidized rates of Rs 60 per kg nationwide, offering an alternative for those unable to afford higher-priced arhar or tur dal.
The government has initiated direct procurement of tur dal from farmers at market prices to build a buffer stock that can be introduced when prices surge, utilizing funds from the Price Stabilisation Fund.
Tur consumption in India has outpaced domestic production, with output falling to 3.43 million tonnes in the 2022-23 crop year from 4.29 million tonnes the previous year, while consumption remains at approximately 4.5 million tonnes annually. Forecasts for the 2023-24 crop season estimate tur production at a slightly lower 3.42 million tonnes.
Import-wise, India received around 778,000 tonnes of tur in the calendar year 2023 from countries like Mozambique, Myanmar and Tanzania, as per government data.
