Loss to Gram Producers Due to Duty-Free Imports
Farmers are facing uncertainty following a recent decision on gram imports. The Union Commerce Ministry’s order has significantly reduced demand for locally produced gram, impacting farmers’ incomes. Previously, farmers benefitted from high gram prices, exceeding the Minimum Support Price (MSP). However, the recent policy change could lead to a drop in gram prices, resulting in financial losses for farmers.
India’s Leading Role in Gram Production
India stands out as the world’s largest producer of gram, accounting for over 75% of global production. Within India, gram constitutes 50% of the total pulse cultivation. Australia follows India in gram production with 6%, while Turkey, Ethiopia, and Myanmar each contribute 3%. In India, Madhya Pradesh leads in gram production with 28%, followed by Maharashtra (19%), Rajasthan (18%), Karnataka (9%), and Uttar Pradesh (5%).
Gram’s Significance and Consumption Trends
Gram holds a pivotal role in Indian households as a primary protein source. However, consecutive years of low production have led to increased gram prices. The Union Ministry of Agriculture and Farmers Welfare reported a decline in gram production from 137 million tonnes in 2021-22 to an estimated 121 million tonnes in 2023-24. This reduction has caused gram prices to soar above the MSP, currently ranging from $0,71 to $0,74 per kg in many states.
Impact of Import Duty Removal
On May 4, the Union Commerce Ministry eliminated the import duty on gram, reducing it to zero. Previously, a 66% duty was imposed, including a 60% custom fee and a 6% agri cess. This move implies that there will be no charges for importing gram from abroad. Experts fear that this decision could lead to a further drop in gram prices, potentially falling below the MSP. Farmers may have to sell gram for $,60 to $0,62 per kg, which is $0,9 to $0,12 less than the current market price.
Opposition and Concerns
Rampal Jat, the National President of Kisan Mahapanchayat, has criticized the decision to remove import duties on gram. He argues that this move unfairly deprives farmers of a fair price for their produce. Jat highlights that while the MSP for gram is $0,65 per kg, current market prices are as high as $0,69 per kg. This decision comes at a time when farmers are bringing gram to the market, potentially causing significant losses for farmers in major gram-producing states like Madhya Pradesh, Maharashtra, and Rajasthan.