India committed to pea import duty, says broker

India’s decision to add a 50 percent import duty on peas is designed to help the country become self-sufficient in pulses, and the government appears to be steadfast in its commitment, says one of India’s largest international pulse brokers.

Anurag Tulshan, managing director of Esarco Exim Pvt Ltd, told delegates attending the Grain World conference in Winnipeg this week that India wants to be self-sufficient by 2022. Tulshan also indicate the duty is part of a larger government plan designed to help farmers double their income and protect them from the vagrancies of the open market.

When announcing the pea duty earlier this month, India officials also raised tariffs on wheat from 10 to 20 percent.

See related: India imposing 50 percent duty on peas and 20 percent duty on wheat

In this interview, Tulshan tells Grain Perspectives’ Matthew Pot that the Indian government wants to send a strong message that they will not allow cheap imports to flood the market.

Tulshan says the government appears to be resolute and has indicated that potential acreage reductions in Canada, and poor harvests will not cause it to change course. The government will be procuring pulses and keeping a buffer of almost two million tonnes. However, “in the event of a poor year they will probably bring the duty levels to zero or a much lower level to ensure prices do not skyrocket locally,” he adds.

How will the increased wheat duty impact India imports? Even at 20 percent duties, Tulshan believes India’s southern regions will continue to import wheat but quantities will be reduced.

 

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.