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Informist, Tuesday, May 20, 2025

 

By Shreya Shetty

 

MUMBAI – Imports of yellow peas in India fell in February due to oversupply, after rising steeply on year for every month since December 2023, analysts and experts said. Imports of the legume are likely to remain subdued even if the government extends the duty-free deadline beyond May 31, they said.

 

India's imports of yellow peas in February fell nearly 56% on year to 146,048 tonnes, according to data from the Ministry of Commerce and Industry. Though yellow pea is still the most imported legume by volume, February is the first time it has seen a fall on year since the government did away with the 50% import tariff in December 2023.

 

According to data provided by Rahul Chauhan, director of iGrain India, yellow pea imports in March are estimated to be 39,149 tonnes, a whopping drop of 94% on year. Imports in April are expected to be 29,308 tonnes, again falling 93% on year.

 

"India already has around 1 million tonnes of yellow peas lying in ports, so imports are falling since we have an over-supply issue," said Deepakh Pareekh, founder of Global Grains and Pulses Council. Between December 2023 and February 2025, the country's yellow pea imports rose to a startling 3.28 million tonnes from virtually nothing before the 50% duty was removed.

 

One of the reasons for the rise in imports was the ever-looming threat of the government reimposing tariffs, analysts said. "The government kept extending the duty-free imports of yellow peas every few months, so whenever the deadline grew near, importers would buy the legume in bulk," Pareekh said. Currently, amid ample supply lying with importers, they are not "scrambling to stock up again ahead of the May 31 deadline", he said.

 

After lifting the duty on yellow pea imports in December 2023, the Centre had given a reimposition deadline of March 2024. However, the permission has since been extended multiple times, with the current extension ending May 31.

 

Low stocks with exporters are also a reason for the drop in imports, Chauhan said. Canada, the top exporter of yellow peas to India, has low availability of the legume as it is currently in its sowing season, he said. Apr-May is usually sowing season for yellow peas in Canada.

 

Pareekh believes the government may extend duty-free imports of yellow peas by another two months. "Prices of chana in the spot markets are above the minimum support price even in the rabi harvest season, which implies that we still need yellow peas to make up for the shortage in chana," he said. 

 

Traditionally, yellow pea is consumed as a cheaper substitute for chana.

 

As of May 12, the Centre has procured 180,000 tonnes of chana, according to data provided by a government official to Informist. The procured amount is a fraction of the 2.80 million tonnes that was sanctioned for procurement. The official further said the shortfall could be attributed to high chana prices, which have been consistently above the minimum support price, discouraging farmers from selling to the government agencies.

 

Prices of chana in the key spot market of Indore, Madhya Pradesh, stood at INR 6,100-INR 6,125 per 100 kg on Tuesday. The minimum support price for chana is INR 5,650 per 100 kg.

 

The high procurement target of 2.80 million tonnes was sanctioned on account of a robust crop outlook, as the government looked to replenish its stock. The agriculture ministry's second advance estimate has pegged chana production at 11.50 million tonnes in the crop year 2024-25 (Jul-Jun), up from 11.03 million tonnes a year ago.

 

Chauhan believes the government may impose a "minimal" duty on yellow pea imports after May 31. However, the duty itself is unlikely to have a major impact on the volume of imports into the country, he said.

 

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 to ensure adequate supply in the domestic market, a senior government official had told Informist on May 5.

 

Imports of yellow peas are likely to continue if the government extends the deadline for duty-free imports, but they will remain subdued due to high stocks of the legume in the country, Pareekh said. Chauhan also expects imports of the legume to be lower for the rest of the financial year 2025-26 (Apr-Mar).  End

 

Edited by Nishant Maher

 

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