Govt extends zero customs duty, ban on pulses' & chr(39) & ' export by a yr

New Delhi, Mar 18 (PTI) With pulses production estimatedto decline this fiscal, the government today extended importof these products at zero duty and the ban on exports onalmost all varieties, for one more year, to increase itsdomestic supply. At a Cabinet meeting here, the Union Cabinet also decidedto extend the distribution of imported pulses through thepublic distribution system for six more months till September30 this year, Home Minister P Chidambaram said today. Besides, it was decided to allow state-run trading firmsto import 1.5 million tonnes of pulses under a reimbursementscheme, he said. "The decision today is to extend zero duty on import ofpulses for one more year beyond 31/3/2009," Chidambaram toldreporters after the Cabinet meeting. As such, pulses can now be imported at zero duty for onemore year till March 31, 2010, he said. "The second decision is to extend the ban on exports ofpulses except Kabuli Channa for one more year, that is1/4/2009 to 31/3/2010," he said. Concerned over the rise in prices, the government hadclamped ban on exports of pulses and exempted them fromcustoms duty in June, 2006. Chidambaram also said, "(a decision was taken) to extendthe current dispensation for public-sector companies to import1.5 million tonnes of pulses against reimbursement up to 15per cent of their losses and service charge for one moreyear." As such, state-run trading firms could import thesepulses to the tune of 1.5 million tonnes, 0.75 million tonnesof which would include yellow peas and dun peas, for one moreyear, he added. To provide pulses to the masses, the government alsodecided to extend a scheme to distribute imported pulsesthrough PDS for another six months till September 30 thisyear, he said. Pulses production is estimated to decline to 14.25million tonnes this year against 14.76 million tonnespreviously. So, it makes sense to continue with measures toaugment supply of pulses for one more year since demand isestimated at 17.18 million tonnes, analysts said. Agriculture production has declined by 2.2 per cent inthe third quarter of this fiscal against a 6.9 per cent growthin Q3. While foodgrain prices continued to be high despiteinflation coming down to 2.43 per cent in the last week ofFebruary, pulses prices have shown moderation due to the stepstaken by the Government. However, certain pulses like Tur have shown a rise inprices by over 28 per cent. PTI