Import Duty On Masur Dal Cut To Zero, Agri Infra Development Cess Halved To 10%

New Delhi: In a bid to strengthen domestic supply and check rising prices, Centre on Monday reduced the import duty on Masur dal to zero. It has also halved the Agriculture Infrastructure Development Cess on the lentil to 10 per cent. 

The notification regarding the same was submitted by Finance Minister Nirmala Sitharaman in both Lok Sabha and Rajya Sabha amid massive uproar by Opposition parties of agri laws.

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The notification stated that the reduced customs duty and cess will come into effect from Tuesday.

As per government data, the retail price of masoor dal has increased by 30 per cent to Rs 100 per kg now from Rs 70 per kg on April 1 this year. 

While making the announcement, Sitharaman said that that the basic customs duty has been reduced from 10 per cent to nil on lentils (Masur dal) originated in or exported from countries other than the United States. 

Additionally, the basic customs duty has been reduced from 30 per cent to 20 per cent on lentils (Masur dal) originating in or exported from the US, she added.

The government has also reduced Agriculture Infrastructure Development Cess on lentils (Masur dal) from the present 20 per cent to 10 per cent.

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Earlier this year, the government has also introduced the Agriculture Infrastructure and Development Cess (AIDC) on certain items, including petrol, diesel, gold and some imported agricultural products to boost agriculture infrastructure. 

The announcement comes months after a tight supply-demand situation with respect to lentils and experts believed that the government needs to revisit import duties on the pulse to encourage overseas purchases in the coming months.

(With inputs from PTI.)