Masur prices may remain range bound as Govt cuts import duty

A notification in this regard was tabled in Rajya Sabha by Finance Minister Nirmala Sitharaman.

“The basic customs duty has been reduced from 10% to nil on Lentils (Masur) originated in or exported from countries other than the USA. Also, the basic customs duty has been reduced from 30% to 20% on masur originating in or exported from the USA. The Agriculture Infrastructure Development Cess on masur has been reduced from the present rate of 20% to 10%,” the notification said.

The effective rate of duty will be 10% on masur imported from all countries except the USA, which will have 30% on masur imported from the USA.

Wholesale prices at Mumbai market are ruling around Rs 6600/quintal from around Rs 5900/quintal in March, a rise of 12% in four months. According to trade estimates, India consumes about 20 lakh tonnes of masur in a year, while it produced about 9 lakh tonnes during the previous rabi season. Government estimate is higher at 13 lakh tonnes.

While prices of most of the other pulses were ruling below the minimum support price (MSP) levels, only masur prices have been ruling firm above the MSP of Rs 5100/quintal. International masur prices have been rising and expected to continue the rally betting on India cutting duties on imports.

According to IGrain India reports, masur prices at ports on the west coast had jumped by over 5% after the government removed the stock limit on pulses in the previous week.

“The reduction in import duty will help to avoid any further increase in prices of masur, which will mostly remain range bound,” said Vivek Agrawal, managing director, JLV Agro.

According to trade sources, during April to June, India already imported more than 1 lakh tonnes of masur, while more than 1.5 lakh tonnes of imported masur is at special economic zones (SEZ) and some ports.