The Indian government has introduced a 30 per cent duty on yellow pea imports, aiming to prevent further drops in local prices. This duty, effective from November 1st, is comprised of a 10 per cent customs duty and a 20 per cent agriculture infrastructure development cess.
The pulses trade had been calling for a higher duty of 50 per cent. Bimal Kothari, Chairman of the India Pulses and Grains Association (IPGA), stated that the duty has caused yellow pea prices to rise by about ₹2-2.5 per kg. He believes this will help stop prices from falling further. “It will contain the declining trend in prices,” Kothari explained. He added that prices are now around ₹35 per kg, preventing them from dropping to the expected ₹28-29 per kg. The duty has not affected the prices of other types of pulses.
Globally, yellow pea prices have fallen significantly. Last year, they were between $375-400 per tonne, but they have since dropped to about $300-320 per tonne. Kothari noted that the import duty has effectively cancelled out the price reduction seen in the global market, meaning the final landing price for importers remains similar to last year.
Trade organisations, led by IPGA, had strongly pushed for a 50 per cent duty to curb cheap imports. While the current 30 per cent duty might not fully stop cheaper imports, it sends a positive message to the market, the trade industry, and farmers. It shows the government is taking steps to support local prices gradually. “I think the government is taking very cautious steps. They do not want the price to go up sharply and it may cause inflation,” Kothari commented.
This move comes after India imported a record amount of pulses in the last financial year (FY25). Yellow pea imports more than doubled to over 21.45 lakh tonnes in FY25, compared to 11.69 lakh tonnes in the previous year. The government had initially allowed increased imports of yellow peas in December 2023 to address potential shortages in pulses due to a lower chickpea (chana) crop in 2024. The new import duty aims to rebalance the market and protect domestic producers.