Raising import duty to 25% won't revive tur prices

PUNE: As tur prices crashed a fifth below the minimum support price (MSP), the Maharashtra government has sought an increase in import duty on tur from 10% to 25% to discourage cheaper imports. However, trade veterans claimed imports would continue irrespective of the import duty as most of it is imported from least developed countries that attract zero duty due to preferential tariff agreement.

As per the second advance estimate, India's tur production has jumped 65% from 25.6 lakh tonne in 2015-16 to 42.3 lakh tonne in 2016-17 due to increase in acreage and go d weather. Despite the Centre's repeated extensions to tur procurement scheme, long queues at the procurement centres have not shown signs of diminishing.

Maharashtra Chief minister Devendra Fadanvis demanded a raising of import duty on tur from 10% to 25% to bring price stability in a meeting with union food minister Ram Vilas Paswan. He also demanded the centre purchase tur that had arrived till April 22.

“We also discussed the need to frame a long-term strategy and policies for price management and purchase mechanism,“ said Fadanvis. However, increasing import duty may not help much, claim trade sources, as India imports most of its tur from Myanmar and the African countries, which fall in the LDC club and hence attract no duty.