The government has extended duty free import of yellow peas by three months till end of May while imposing 10% duty on imports of lentils (masur) from Saturday, according to a gazette notification.
Both pulses’ varieties are imported mostly from Canada, Russia and Australia.
In December 2023, the government had allowed duty free import of yellow peas – a cheaper variety of pulses used as substitute of chana – due to prospects of lower chana output and the relaxation was extended from time-to-time till end of February. An import duty of 50% was imposed on the pulses’ variety to encourage domestic production of chana in 2017.
India’s yellow peas import of 3 million tonne (MT) was out of a record 6.7 MT pulses import in 2024. India imports about 15-18% of its annual pulses consumption of around 29 MT.
While the landed cost of yellow peas is currently at `32-35/kg and the dal made out of it is sold at around `40/kg, rest of the pulses are ruling in the range of `90-160/kg in the retail market.
Trade sources told FE that with the arrival of fresh rabi harvest, mandi prices of chana in Maharashtra and Karnataka are ruling in the range of `5,200-5,350/quintal against the minimum support price (MSP) of `5,650/quintal for the 2024-2025 marketing season.
The basic import duty on masur was reduced to zero in July 2021 to boost domestic supplies, while the exemption from 10% agri-infrastructure cess was given in February 2022.
Since then, it was extended multiple times and was valid till March 2024. Sources said masur would now attract basic customs duty (5%) and agriculture infrastructure and development cess (5%).