Lentils Get Coal For Christmas

PANAMA - Dec 22/17 - SNS -- India's government gave lentil markets a lump of coal for Christmas, announcing that import duties would jump from zero to 30% effective December 21.

Seeding of this season's rabi crops is still underway. Progress through December 22 suggests land in chickpeas could reach 10.4 million hectares and lentils 1.76 million. Average yields would result in a 9.92 million MT chickpea and 1.27 million lentil crop.

The immediate impact of the zero duty cancellation is clear: any lentils enroute to India and any outstanding contracts will cost 30% more than they did on December 20. Local traders in India think this will force international markets for red lentils to drop 10% to around U.S. $425 per metric ton (MT) C+F Indian ports.

Importers will likely ask exporters to divert any cargoes that are enroute to India to other destinations, while outstanding purchases may be deferred or cancelled.

In making the announcement, the government said, "Production of chana (chickpeas) and masoor (lentils) are expected to be high during the forthcoming Rabi season, and cheap imports, if allowed unabated, are likely to adversely affect the interest of the farmers. Taking these factors into consideration and to protect the interest of the farmers Government has decided to increase the said import duty (on chickpeas and lentils).

"At present, tur attract 10% import duty. Further, Government has recently imposed 50% import duty on yellow peas. Other pulses, however, attract Nil import duty. There has been a record production of pulses in the current year.

"However, despite sufficient domestic availability, import of pulses continue to take place on account of low prevailing international prices. Such imports suppress the domestic prices of pulses and adversely affect the interest of farmers."