Govt imposes 10% duty on import of chana from 1 April

With a strong rabi harvest expected, the government decided to reimpose a 10% import duty on chana (bengal gram). The move marks an end to the duty-free import regime that was in place since May last year to ease domestic shortages and stabilize prices. The decision comes at a time when India’s pulse production is showing signs of recovery. According to a notification issued on 27th March, the 10% import duty on chana will come into effect from 1 April. According to the second advance estimates released by the ministry of agriculture on 28 February, tur production is expectd to be 3.34 million tonnes, nearly the same as last year’s 3.31 million tonnes. Gram production is estimated at 12.16 million tonnes, marginally lower than the previous year but higher than the average gram production from 2018-19 to 2022-23. Lentil production is estimated at 1.64 million tonnes, higher than last year’s 1.56 million tonnes. India imports significant quantities of chana to address domestic supply gaps and rising prices, with the government sometimes removing import duties to encourage imports, particularly from countries like Australia and Tanzania. According to data from the agriculture ministry, chana production has followed a fluctuating trend. Production stood at 13.54 million tonnes in fiscal year 2022 (FY22), before declining to 12.27 million tonnes in FY23 and further to 11.04 million tonnes in FY24. For FY25, production is estimated to rise slightly to 11.54 million tonnes. The import of chana was made duty-free in May 2024 due to low domestic production. Prior to that, a 10% import duty was in place. While presenting the Union Budget for 2025-26, finance minister Nirmala Sitharaman announced the launch of a six-year Mission for Aatmanirbharta in Pulses, with a special focus on tur, urad and masoor. Sitharaman said the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers Federation of India (NCCF) would be prepared to procure as much of these pulses as farmers offer over the next four years, provided they register with these agencies and enter into agreements. India, the world’s largest producer, consumer and importer of pulses, has seen its import dependency rise in recent years due to erratic climate patterns affecting domestic production. In calendar year 2024, India’s pulses imports nearly doubled to a record 6.63 million tonnes, up from 3.31 million tonnes the previous year. These imports accounted for about one-fourth of the country’s total domestic consumption, estimated at 27 million tonnes.

Insert title here