Export NewsNo Comments
The Indian Government has decided to give a 7% export incentive under the Merchandise Export from India Scheme (MEIS) for a period of three months till June 20, 2018, on the sale of Bengal gram or Chana. The import duty on Kabuli Chana was increased to 60% just on Wednesday.
Bengal gram (chana) is a rabi crop. It is grown mainly in the states of Madhya Pradesh, Maharashtra, Karnataka, and Rajasthan and is currently being harvested. The industry feels this incentive by the government will help in curbing the price fall of chana though it may not lead to a large export.
The sellers were expecting the price of chana to fall from current Rs 3400/quintal to Rs.3000/quintal which already much below the MSP of Rs4400/quintal. As per the industry, exports can be profitable with a 7% MEIS incentive if the price of chana falls any further.
All India Dal Millers Association told, “Chana production is expected to be higher by 20 lakh tonne over previous year. The government will decide price of superior quality chana and give 7% incentive on the basis of this price.” The association head also feels that if farmers want the MSP price for Chana, a minimum of 25 lakh tonnes of chana needs to be exported.
The government has announced a hike in import duty on Wednesday making the rate 60%. The Kabuli chana price was at Rs 9000/quintal to Rs 10,000/quintal in the last year and has fallen to has declined to Rs 6000/quintal to Rs 7000/quintal.