Industry
India may extend duty-free urad imports as supplies keep falling
Summary
- The pulse variety, which is widely consumed in Southern India, is allowed to be imported without any duty, and the policy is likely to be continued given that its domestic production has been on a steady decline.
New Delhi: The Centre is considering allowing duty-free import of urad to beyond 31 March amid a supply crunch, two people aware of the matter said.
The pulse variety, which is widely consumed in Southern India, is allowed to be imported without any duty, and the policy is likely to be continued given that its domestic production has been on a steady decline.
Urad production has fallen from 2.7 million tonnes (mt) in FY22 to 2.6mt in FY23 and 2.3mt in FY24, as per agriculture ministry data. With demand rising, any supply shortfall could push up prices.
“The government is reviewing all food items allowed for shipment without tariffs, as there is a gap between demand and supply. The inclusion of urad in the list of duty-free imports is being discussed in the light of sowing trends and expected production," said the first among the two persons mentioned above.
Also read | Urad prices soften as monsoon boosts area under cultivation in kharif season: Govt
Urad is a three-season crop, with most sowing taking place in the kharif season, while it is also sown during the rabi season and in summer. According to agriculture ministry data, urad was sown on 3 million hectares in the kharif season of 2024, down from 3.2 million hectares in the previous year.
Citing a NITI Aayog report, Union minister of state for consumer affairs Nimuben Bambhaniya stated in the Lok Sabha in June last year that urad consumption witnessed a mixed trend from FY21 to FY23.
The consumption of the essential pulse was recorded at 2.4mt in FY21, rising significantly to 3.2 million tonnes in FY22 before slightly declining to 3.1mt in FY23. In FY23, there was a supply gap of 558,000 tonnes, as production stood at 2.6mt.
Also read | Centre to crackdown on tur and urad dal hoarders amid soaring prices
“The matter will be taken up in the upcoming meeting of the committee of ministers, which is likely to be held in the next few days," said the second person.
India imports urad (black gram) mainly from Myanmar and Brazil.
Production of all pulses has continued to decline in India, from 27.3mt in FY22 to 26mt in FY23, and 24.5mt in FY24, according to agriculture ministry data.
According to the data, the most that India has produced in the last five years was 27.3mt in FY22. The lowest, 23mt, came in FY20.
The production of kharif pulses has also witnessed a declining trend, dropping from 8.23mt in FY22 to 7.62mt in FY23, and shrinking further to 6.86mt in FY24, the agriculture ministry data showed.
Also read | Brazilian urad, tur dal for India dishes
While presenting the Union Budget for FY25-26, Union finance minister Nirmala Sitharaman announced the launch of a six-year Mission for Aatmanirbharta in Pulses. The initiative will have a special focus on tur (pigeon pea), urad and masoor (lentils) to boost domestic production and reduce India's dependence on imports.
The minimum support price of urad has been fixed at ₹7,400 per quintal, up from ₹6,950 in the previous season.
Queries emailed to consumer affairs ministry remained unanswered at press time.
And read | India imports 3,000 tonnes of urad beans from Brazil, 20,000 tonnes more to go
