Controversy in the world market over the import policy of pulses formulated by India

- Ubhi Bazar ઃ Dilip Shah

- Fear of re-imposition of free import exemption for a limited period of time has caused resentment among pulses exporting countries.

De Shama has seen a dramatic change in the equations in recent years in the production of various pulses. After the total domestic production of pulses increased from 206 to 206 lakh tonnes in the 2016-17 season, in the subsequent years of 2016-17, such production increased further to 3 lakh tonnes. However, since then, there has been a reversal in such spectacular growth in production. About 3 to 4 per cent of the total production of pulses in the world is produced in India alone and yet we have to import pulses from overseas due to high domestic demand against domestic production, experts said. Globally, the average yield per hectare of pulses has been as high as 2.50 quintals, while the average production of such pulses per hectare in India has been around eight quintals. Therefore, if the production is increased domestically, further increase in production can be achieved and if this happens, the dependence on imports can be reduced, experts are showing. At present, the import policy of pulses includes import of quince, urad and mug under quota system while import of chickpeas and lentils is controlled through changes in import duty, pulses market sources said. However, to increase the availability of domestic goods, imports of Adad, Tuwer and Mugni have been kept under open general licenses till October 31, 2021. Out of the total area under pulses in the country, most of the area has been under rainfed cultivation and the area under pulses on irrigated land has been relatively less. This situation needs to change.

Meanwhile, the Indian government has recently placed imports of Tuwer, Adad and Mugni under open general licenses in Australia, Canada, US, Russia and other countries. Such pulses exporting countries have welcomed India's import policy. However, according to the exporting countries, the Indian government has given such free import exemption only for a few months and then for months and then the import of pulses has also expressed resentment against the re-imposition of imports. The issue has reached the doorsteps of the World Trade Organization (WTO) and pulses exporters are demanding that India respond. India, meanwhile, has also curbed imports of yellow peas, a question that has been discussed overseas at a recent meeting of the World Trade Organization. The Government of India has fixed an annual import quota of 4 lakh tonnes for Tuwer, 4 lakh tonnes for Adad and 1.5 lakh tonnes for Mugs for 2021-2 and the exporting countries have expressed strong resentment against this. India has imposed such import restrictions citing market conditions and exporters have demanded that India should provide a broad definition of such market conditions. Do India's restrictions on pulses imports violate WTO rules? That question is now being discussed in the world market. Meanwhile, yellow peas imported to India are subject to a certain minimum price and an additional 50 per cent duty in the form of import control. European countries have expressed displeasure over India's move at a time when sanctions are being imposed. European countries have raised the issue at the World Trade Organization. Thus, pulses exporting countries have been seen trying to encircle India. Should India also retaliate in this matter and make efforts to resolve the dispute or not? Disagreements have also appeared in the market.

Meanwhile, a new controversy has erupted at home over the illegal import of yellow peas into the country. The matter went to the apex court after a recent High Court judgment said that such imports could be released if the customs department pays the fine if such imports are made and confiscated by the government. The verdict has been heard in the pulses market. The Supreme Court has also given instructions to re-export such quantities. The Supreme Court had asked whether such illegal importers could re-export in two weeks and whether such an option should be considered by the customs authorities. Such importers, however, have to pay a penalty. Earlier, the Center had knocked on the door of the Supreme Court against a judgment passed by the High Court in October 2020. While the Indian government is facing strong opposition to its policy in the world market on the issue of pulses imports as a whole, the central government is also waging a legal battle to get the case to court at home. Thus, the government has come under heavy pressure in terms of pulses import policy.