India Debates Pulse Duty Hike

VANCOUVER - Jul 6/13 - SNS -- Efforts to convince the Indian government to impose import duties on pulses are becoming more intense, drawing stern opposition from the India Pulses and Grains Association (IPGA).

The debate highlights some of the conflict within the country's agriculture community over the best way to solve the problems of ensuring consumers have food at a reasonable and affordable price and that farmers are paid enough to encourage continued expansion in production.

Greater involvement with world markets is seen by the IPGA as a key to ensuring farmers get the best price possible, whereas the Commission for Agricultural Costs and Prices (CACP) sees protectionism as the best way to ensure that pulse production continues to expand with future needs.

India's 11th five-year plan met its target of increasing foodgrain production by 20 million metric tons (MT) per year one year ahead of schedule. The 12th five-year plan seeks to boost production by 25 million MT per year by 2017. While research into new varieties and production technology is seen as the cornerstone to achieving that goal, entities such as the CACP seem to believe that minimum support prices (MSP) and import duties as equally critical elements to success.