NEW DELHI: The government's decision to levy agriculture infrastructure and development cess of 20-50 per cent on imported pulses will not have any impact on prices as the rise in cess will be neutralised by lowering of customs duty, according to India Pulses and Grains Association (IPGA).
In Budget 2021, the government proposed to reduce import duty to 10 per cent on peas, Kabuli chana, Bengal gram and lentils.
Currently, the duty on chana is 60 per cent, peas at 50 per cent, Kabuli chana at 40 per cent and lentil masoor at 30 per cent.
"The impact is zero. We have no issues as the status quo remains. The amount of cess introduced gets neutralised with lowering of import duty to a flat rate of 10 per cent on four varieties of pulses," IPGA Vice-Chairman Bimal Kothari told PTI.
The association wants the government to keep the import duty on pulses higher than the minimum support price to check cheaper shipments, he said.
The government has proposed to slap an agricultural infrastructure and development cess of 20 per cent on lentil masoor, 30 per cent on Kabuli chana 40 per cent on peas and 50 per cent on Bengal gram and chickpeas.
Kothari said the country's pulses imports have been declining for the last three years from the level of 60 lakh tonnes in 2016-17 in the wake of rising domestic production.
The pulses imports remained lower at 20 lakh tonnes during April-January period of 2020-21 fiscal, as against 26 lakh tonnes in the entire previous fiscal, he added.