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Informist, Monday, May 5, 2025

 

--Official:Govt may extend duty-free yellow pea imports if chana prices high

--CONTEXT: Permission for duty-free import of yellow peas expires May 31

 

By Pallavi Singhal

 

NEW DELHI – The government may consider allowing duty-free imports of yellow peas beyond May 31 if chana prices continue to stay above the minimum support price of INR 5,650 per 100 kg to ensure adequate supply in the domestic market, a senior government official told Informist. Yellow pea is usually consumed as a substitute for chana.

 

An import duty of 50% on yellow peas was introduced in November 2017. To curb the price rise in pulses, the Centre, in early December 2023, allowed duty-free imports until March 2024. The permission has since been extended multiple times, with the current extension ending May 31.

 

Prices of chana, a key legume in Indian kitchens, have been hovering above the minimum support price in most markets despite a higher production outlook this year. The agriculture ministry's second advance estimate, announced in March, has pegged chana production for the crop year 2024-25 (Jul-Jun) at 11.50 million tonnes, up from 11.03 million tonnes in 2023-24.

 

Wholesale prices of chana in the key market of Akola in Maharashtra were at about INR 6,000 per 100 kg Monday. The significantly higher prices have slowed the government's procurement operations, with only about 40,000 tonnes of the legume procured as of Apr. 30. This is less than 1.5% of the total quantity of 2.80 million tonnes of chana sanctioned for procurement in the rabi marketing season 2025-26 (Apr-Mar).

 

The government's chana stocks were depleted after it failed to procure any of last season's produce owing to lower production and high demand. "Any chana that we had procured in 2023 was used in sales of Bharat dal," the official explained. With almost nil stocks of the commodity in the government's kitty, it may be forced to continue duty-free imports of yellow peas.

 

"Clearly, the market has sufficient appetite to absorb all chana arrivals," the official said. "Traders and stockists are buying to sell in the lean season. If the government is unsure of its ability to intervene in the market by the end of May, we may have to extend duty-free imports to keep prices stable in the country throughout the year."

 

The government aims to buy at least 500,000 tonnes of chana to be able to intervene in the market as and when prices rise. "It is after almost two years of inflation in pulses that prices have come down. The government is not willing to let prices rise again," the official said. 

 

Edited by Rajeev Pai

 

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