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Informist, Wednesday, Jul. 16, 2025

 

By Pallavi Singhal

 

NEW DELHI – While a section of pulses market has been intensely lobbying for the withdrawal of duty-free import of yellow peas, a section of market experts has raised concern about such a policy shift at this time, citing potential disruptions to price stability and consumer interests. The former group argues that the duty-free import of yellow peas has been discouraging local output of pulses, while the latter section claims that duty-free import of yellow peas, extensively used as a substitute for other pulses such as tur and chana, has played a key role in stabilising prices across the pulses basket. Only two years ago, India had faced severe shortages of major pulses, which has now been addressed, they point out.

 

India's duty-free yellow pea import policy, introduced in December 2023 to combat high pulses inflation, has undergone several extensions. The policy was initially set to expire in March 2024 but has been extended multiple times, with the latest extension valid until Mar. 31, 2026.

 

The discussion for re-imposing duty on the pulse has grown as sowing of pulses, specifically the largest kharif pulse, tur, progresses at a slow place. Data released Monday showed that the acreage area under tur has fallen to 2.5 million hectares from 2.7 million hectares a year ago. Traders have argued that sowing has fallen owing to duty-free imports of pulses which has kept prices low. Tur prices in the key market of Akola were at INR 6,775-INR 6,800 per 100 kg, against the MSP of INR 7,550 per 100 kg.

 

Moreover, a recent comment by Congress national general secretary Randeep Singh Surjewala accusing the centre of "orchestrating a pulses price crash in Karnataka" has also reignited the debate with traders using the argument to their cause.  

 

Notably, the opening of yellow pea imports has had a significant role to play in raising overall pulse availability and bringing down food inflation, government officials believe. The commodity has accounted for as much as 20% of total pulses demand, replacing chana through blending in besan, and as a mixture with other pulses, they said.

 

"Any move to restrict duty-free imports now will be ill-timed and counterproductive and holds the power to disrupt price stability and hurt consumer interests," Agriculture economist Deepak Pareek said. The prices of most pulses have come down to MSP after remaining high for a long time. Inflation in pulses began sliding this calendar year and fell to its lowest since February 2018 at (-)11.76% in June, after remaining in double digits for over a year between 2023 and 2024.

 

Meanwhile, despite a projected slight increase in the country's total chana output for 2024-25, prices of the commodity have remained above or at the minimum support price, reflecting high demand amid pipeline shortages due to lower production last year. The prices of pulses generally slide below MSP during peak arrival season, which has just ended.

 

The production of chana in 2023-24 had declined to 11.0 million tonnes from 13.5 million tonnes in 2022-23. The agriculture ministry pegs the current crop year's production at 11.3 million tonnes. Chana prices in the key market of Indore, Madhya Pradesh, were ruling at INR 6,000-INR 6,050 per 100 kg on Monday, against the MSP of INR 5,440 per 100 kg. In Delhi, prices of chana were ruling at INR 5,880-INR 5,850 per 100 kg.

 

Furthermore, with the government procurement of chana falling significantly short of its target, prices may surge due to reduced market intervention. The procurement ended in the first week of July at 320,000 tonnes, a substantial drop from the originally sanctioned 2.8 million tonnes. "In a situation like this, stoppage of imports of yellow peas will upset the availability of chana. The stock of chana in the country is at the peak at present as arrivals have just ended. As the stocks begin depleting, prices have the potential to increase," said G.K. Sood, the chairman of MEIR Commodities India Ltd., a global agricultural trading house that specialises in sugar, molasses, and pulses.

 

In 2024-25 (Apr-Mar), India imported 2.16 million tonnes of yellow peas, up a steep 85% on year. In the first quarter of FY26, India has imported another 160,000 tonnes of the pulse, according to a senior government official. Import of yellow peas, is the highest among all pulses. Currently, prices of yellow peas range between INR 2,800 and INR 3,000 per 100 kg in key spot markets across the country, making it the cheapest legume.

 

The current landed cost of yellow peas is around INR 3,150 per 100 kg, which is higher than the ruling price, says Sood. "Imposing duties on yellow peas imports at such a time would lead to avoidable foreign exchange outflows, drive up import prices for African-origin pigeon peas and chana, and hand speculative traders an undue windfall," he said.

 

According to government estimates, as much as 1.2 million tonnes of yellow peas are already lying at Indian ports, waiting to be absorbed by the market. "If duty is imposed, the maximum benefit will be made by traders and multi-nationals who are holding 1.25 million tonnes of yellow peas cargo in Indian ports. These are the peas that were harvested in 2023 and 2024, and will be consumed in August 2025 by Indians. As much as 700,000 tonnes of these belong to multi nationals, while the remaining 550,000 tonnes is with large and mid-size traders," Pareek said. 

 

However, traders Informist spoke to have argued that imposing duties on yellow peas imports would help protect domestic farmers and the pulses industry. They claim that there is a huge availability of yellow peas in the global market, both from Russia and Canada. Moreover, with China not buying the pulse as it levied 100% duties on Canada's yellow pea in response to Canada's tariffs on certain Chinese goods, global supply has been even higher. "A 20-30% duty on yellow peas imports could help level the playing field for domestic producers and increase their competitiveness," a trader for a multinational said on condition of anonymity.

 

India has imported a total of 3.5 million tonnes of yellow peas into the country since it opened its imports in December 2023. The country's domestic production of yellow peas is estimated to be around 800,000-900,000 tonnes.

 

The government, according to a senior official, is unlikely to reconsider its stance on opening yellow pea imports as it wants to keep Inflation under control. "It is because of these imports that we have been able to reign in prices for all major pulses," the official said.  End

 

Edited by Akul Nishant Akhoury

 

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