The government has decided against extending duty-free import of yellow peas largely used as substitute of chana, beyond February 28, food minister Pralhad Joshi on Thursday said.
“We are stopping the duty-free import of yellow peas,” Joshi said at the sideline of the pulses conclave 2025. However he stated a group of ministers (GoM) will soon take a call. Trade sources said the government may impose a 15%-20% import duty on yellow peas.
The move to restrict import of yellow peas comes after trade body – India Pulses and Grains Association had urged against continuing with zero import duty especially when over 3 million tonne (MT) of the cheap variant of chana – key pulses variety largely used in the food processing sector, had been imported.
“There has been lots of dumping of yellow peas which is expected to hit domestic producers and farmers as the landed cost of pulse variants should not fall below the average minimum support price (MSP) of pulses in India,” Bimal Kothari, chairman, IPGA said. Kothari said the MSP of pulses in the country ranges between Rs 56/kg – Rs 85/kg
Trade sources said that the landed cost of yellow peas, mostly imported from Canada and Russia, is currently at Rs 32/kg and the dal made out of it sold around Rs 40/kg while rest of the pulses are ruling in the range of Rs 90 – Rs 160 / kg in the retail market.
Sources said that continuation of imports of yellow peas would hit prices, with the commencement of arrivals of chana, which has a 50% in India’s pulses production. The mandis prices are currently ruling around the MSP of Rs 5650/quintal in Maharashtra and Karnataka where arrivals have commenced.
India’s yellow peas import of 3 MT was out of a record 6.7 MT pulses import during the 2024 calendar year.
“Our pulses production was badly hit last year and the prices were high so we had to import. We are going to import a similar quantity, it will be much less,” Kothari said
In December 2023, the government allowed duty free import of yellow peas due to prospects of lower chana output.
The duty relaxation on yellow peas currently has been extended till the end of February, 2025. Earlier an import duty of 50% was imposed on pulses variety in 2017 to encourage domestic production.
In 2023-24 crop year (July-June) due 10% drop in chana output to 11.03 MT on year because adverse weather conditions pulled down overall country’s pulses output by 7% to 24.24 MT on year. However trade had projected the chana output less than the agriculture ministry’s projection.
Tanzania offers to step up pulses exports to India, sought extension of MoUs
Meanwhile, Tanzania, which exports 0.2 MT of tur dal or pigeon peas annually to India under a memorandum of understanding sought removal of trade restrictions on green gram imports by India and extension of the existing agreement for duty-free supply.
“We have requested the Indian government for extension of the agreement by two years to FY27 for supply of 0.3 MT of pigeon peas and 0.15 MT each of chickpeas and green gram,” Kamwesige M Mtembei, director of crop development and standard setting, Tanzania, told FE.
Tanzania produces around 0.9 MT of pulses annually which excludes beans, while its domestic consumption is only 0.15 MT.