US seeks tariff exemption on India's yellow lentils

Yellow lentils are becoming important in trade talks between India and the United States. This follows India's recent decision to impose a 10% import tax on pulses, including red lentils. The US is asking India for a separate classification code for yellow lentils. This code would keep yellow lentils out of the new duty structure that affects red lentils. Currently, all types of lentils imported into India are grouped under one code. This includes red and yellow lentils from various countries. Bimal Kothari, an expert in the industry, explained that if yellow lentils have their own code, they will not be subject to the new taxes. The US plans to introduce tariffs on Indian goods starting in April, which adds urgency to these discussions. Obtaining a new classification can take time. It requires a review by India’s tax and customs agencies, followed by approval from an international committee. Both countries are still discussing this issue, and any decision will consider the impact on India's own lentil production. India's production of lentils has been increasing, but it is still not enough to meet domestic demand. In the last fiscal year, India imported a significant amount of lentils to fill this gap. The US has contributed a small quantity to these imports. In the first nine months of the current fiscal year, Canada and Australia were the largest suppliers, while the US only provided a tiny amount.