Falling inflation, prices: Panel calls for ban, curbs on import of major pulses, Pg10.

Key Highlights:

• The CACP has recommended a complete ban on yellow pea imports and high tariffs on chana and masoor to protect domestic prices.
• In 2024-25, India imported a record 72.56 lakh tonnes of pulses worth $5.48 billion, including significant quantities of yellow peas, chana, and masoor.
• The Centre had removed import duties on yellow peas in December 2023 and chana in May 2024 due to high food inflation.
• In August 2024, food and pulses inflation softened to -0.7% and -14.9% respectively, leading to potential policy reversals.

Detailed Insights:

• Unrestricted cheap imports of pulses have negatively impacted domestic market prices, prompting the CACP's recommendations.
• The CACP's proposal precedes the 2025-26 rabi cropping season, influencing the government's agricultural policy decisions.
• The Centre fixed MSPs of Rs 5,875 and Rs 7,000 per quintal for chana and masoor crops, respectively, based on CACP's report.
• The government re-imposed a 10% duty on small-sized chana from April 2025, while duty-free imports of yellow peas are allowed until March 31, 2026.
• High consumer price inflation in pulses persisted for 15 months due to poor crops, but improved production and monsoon rains have eased inflation.

Key Concepts Involved:

• Minimum Support Price (MSP): The price at which the government purchases crops from farmers to protect them from market fluctuations.
• Rabi Cropping Season: The agricultural season when crops are sown in winter and harvested in the spring.
• Inflation: The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.