India cuts import duty, agriculture cess on lentils or masur to boost domestic supply

Government has cut the import duty on lentils or masur to nil from 10% earlier in order to improve the supplies in the local market. It has also reduced the agriculture cess on the lentils to 10% from 20% earlier. There are reports that about 60,000 ton is being discharged at Kolkata and Visakhapatnam port. Prices in the global market are trading with a bullish tone on account of worries over potential yields in western Canada and the US due to dry weather there. The duty reduction in India could further trigger upside push to prices in the global market. According to a media report, India imported nearly 70,000 ton in May from Canada.

Prices in the local market are likely to observe some correction due to expectations of rise in the imported cargo in the coming months. Moving ahead, it would be crucial to determine the availability in Canada and Australia and potential production in the 2021-22 season. Lentil crop in Canada is in the flowering to reproductive stage.