Lower production & reduction in import duty boosts masur imports

Masur imports into the country have surged over the last two months after the government reduced the import quota to 10% from 30%. Since the start of August, there are reports of shipments arriving every week of not less than 30,000 ton. During Apr-Jul about 400,000 tons have already landed on Mundra, Hazira, and Kolkata. Another 200,000 ton are likely to arrive in August.

Lower production of Masur or lentils in 2019-20, prompted the government to reduce the import duty on the pulse to 10% from 30% on Jun 2. Duties for cargoes of US origin were reduced to 30% from 50% earlier, according to customs notification. The duty will be effective until Aug 31. Worries over customs duty scaling back to 30% have also caused imports to rise in the last four-five months. Masur in Mumbai imported cargo was quoting at 5,250 rupees per 100 kg while in Kanpur desi variety is selling at 5,700 rupees.

Factors to watch going ahead is the government policy after August, crop numbers in Canada, Australia and Black Sea region, Inventories in the country.