- Decision: The central government has extended the duty-free import period for arhar (tur) dal until March 31, 2026 (DGFT notification, January 20, 2025).
Relevance : GS 3(Agriculture)
- Farmers’ Concerns:
- Farmers in Maharashtra and Karnataka are selling their produce below Minimum Support Price (MSP) due to cheaper imports.
- Market price for arhar has dropped to ₹7,000 per quintal, compared to ₹12,000 per quintal last year.
- Fear of declining profitability may discourage farmers from cultivating arhar in future seasons.
Economic and Policy Impact:
- Self-Sufficiency at Risk:
- India has been promoting self-reliance in pulses, yet heavy reliance on imports continues.
- Experts warn that falling MSP realization will reduce domestic production, increasing import dependency in the long run.
- Trader & Industry Concerns:
- Dal mill associations demand reversal of the decision and an increase in MSP to ₹9,000 per quintal.
- Traders are hesitant to purchase local produce, waiting for cheaper imported pulses.
- Import Trends:
- India imports pulses mainly from Myanmar, Australia, Africa, and Canada.
- Arhar and urad primarily come from Africa and Myanmar, while chana, peas, and masoor come from Australia, Russia, and Canada.
Wider Implications:
- Impact on Other Pulses:
- Duty-free import continues for arhar, urad, masoor, chana, and yellow peas (moong excluded).
- Prices of all pulses, including chana and masoor, have fallen below MSP.
- Example: Chana MSP is ₹5,650 per quintal, but mandi prices are lower.
- Contradiction with Government Goals:
- Despite multiple budget speeches advocating self-sufficiency in pulses, India continues to depend on imports.
- The policy shift could be counterproductive to domestic pulse production targets.
Conclusion:
- Short-Term Benefit: Ensures stable prices for consumers due to increased supply.
- Long-Term Risk: Could disincentivize domestic farmers, leading to greater import dependency and loss of agricultural income.
