More Pressure for Pulse Duties in India
NEW DELHI - Oct 26/13 - SNS -- India's Agriculture Department has stepped into the debate over raising import duties on pulses to combat what it claims is an unintended consequence of record high minimum support prices (MSP) for pulses and a weaker Indian Rupee.
Traders in India say there is no factual basis for the news article in India's Business Standard newspaper, which claims some companies are importing tur or pigeon pea from Myanmar and selling them to state trading companies (STC) for the Minimum Support Price (MSP).
However, importers see the latest article as part of a carefully orchestrated campaign by some government officials to persuade voters that higher import duties on pulses are essential to protect recent gains in productivity.
Some believe there is a good chance duties will be boosted before the next election or at the start of the next fiscal year. Various import duty rates have been proposed over the past year. One ministry wants a 10% import duty, another 7.5%, and now the Agriculture Department wants an import duty between 20% and 30%.
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