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Informist, Thursday, Oct. 30, 2025

 

By Shreya Shetty

 

MUMBAI – The imposition of import duty on yellow pea imports is likely to boost sentiment in the pulses market, though a steep rise in prices is unlikely as the country already has ample stocks of the pulse, analysts and traders said. The announcement could also spur a rise in the area sown under chana in the ongoing rabi season, they said.

 

The government imposed a 30% import duty on yellow peas with a bill of lading date on or after Saturday, according to a late Wednesday notification by the Department of Revenue under the Ministry of Finance. Imports of yellow peas will now attract a 10% standard rate and a 20% Agriculture Infrastructure and Development Cess.

 

Though market sentiment is likely to improve due to the announcement, the immediate reaction is likely to be limited, as the country will still receive imports that have already been dispatched, said Satish Upadhyay, secretary of the India Pulses and Grains Association. "Immediately, prices may go up INR 3-INR 4 per kg for yellow peas. Chana prices could also rise by INR 100-INR 300 per 100 kg," he said. Yellow peas are used as a cheaper alternative to chana.

 

However, the price rise may be minimal. "We still have stocks of yellow peas lying at ports here (in India)," said Ankit Kedia, a trader from Akola in Maharashtra.

 

Currently, major ports across the country, such as Mundra, Kandla, and Hazira, hold 275,112 tonnes of yellow peas, according to data from the India Pulses and Grains Association.

 

"What could also happen is that prices of yellow peas could touch INR 39 per kg, and then importers still holding the stocks of the legume could book profit and prices could settle again to INR 35-INR 36 per 100 kg," Upadhyay said.

 

Currently, prices of yellow peas range between INR 3,250-INR 3,550 per 100 kg in major port cities across the country. On Thursday, prices of yellow peas across the country rose by INR 50-INR 100 per 100 kg. Prices of chana also rose by INR 50-INR 125 per 100 kg to INR 5,600-INR 6,100 per 100 kg in key spot markets.

 

The implementation of the import duty follows months of requests from both the market and the agricultural ministry. While the market had been demanding the reimposition of duty on yellow peas for a while, the agricultural ministry only recently began requesting it.

 

Early in October, the Commission for Agricultural Costs and Prices had urged the government to ban the import of yellow peas. Prior to that, Agriculture Minister Shivraj Singh Chouhan had expressed concern that duty-free imports depress domestic pulse prices and discourage farmers. He wrote to the food and consumer affairs minister in August, seeking the imposition of 50% customs duty on yellow pea imports to protect Indian farmers and promote self-reliance in pulses.

 

India's duty-free yellow pea import policy, introduced in December 2023 to combat high pulse inflation, has been extended several times. The policy was initially set to expire in March 2024 but was extended multiple times, with the last extension in May 2025. Prior to December 2023, yellow pea imports were subject to a 50% import duty. 

 

With nil duty, yellow pea quickly became India's highest-imported legume in terms of volume. India imported a record 6.63 million tonnes of pulses in 2024-25 (Apr-Mar), nearly double the 2023-24 figure. At 2.9 million tonnes, yellow peas accounted for about 45% of the total imports of pulses.

 

"The import duty had been due for the last 15-20 days and the agriculture ministry got confirmation from authorities only now," Upadhyay said. The imposition of the duty was also delayed to preserve international trade relations, as some shipments of yellow peas from Canada and Russia were already on their way to India, he said.

 

However, as rumours of the import duty were already circulating internationally, orders for yellow pea cargoes have been lower this year, Upadhyay said. In the first five months of FY26, India imported 291,926 tonnes of yellow peas, down 70% on year, data from the commerce ministry showed.

 

The announcement is also likely to increase the area sown under chana during the rabi season, which began a few weeks ago, market participants said. "There is no other legume which gives as much of a return as chana does during rabi season, so yes, this news will definitely increase the area," said Rahul Srinivas, a trader from Solapur in Maharashtra.

 

"The yellow pea (import) duty will increase the area sown under chana, but it would have been an even higher increase had the government announced a higher duty on chana imports too," said Kailash Kakani, a trader from Indore, Madhya Pradesh.

 

Currently, chana attracts a 10% import duty. However, countries such as Australia — the largest exporter of chana to India — can absorb the rise in costs, enabling them to continue selling the legume to India, market participants said.

 

"The market had also recommended (to the government) 30% duty on chana and masur each, but I think they (the government) are unlikely to implement those anytime soon. The government lacks a buffer stock of chana," Upadhyay said. The lack of chana stocks is "one of the reasons why a 50% duty was not imposed on yellow peas," he said.

 

As of Friday, the acreage under chana across India was 319,000 hectares, up 10.4% on year from 289,000 hectares sown last year, according to data from the agriculture ministry.  End

 

Edited by Saji George Titus

 

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