Uncertainty persists over duty-free import of yellow peas in India
08-May-2025 04:05 PM
Mumbai. Although a leading trade organization, the India Pulses and Grains Association (IPGA), has strongly urged the government to impose a customs duty of at least 50 percent on the import of yellow peas, the government is not inclined to take a hasty decision.
Yellow peas have been the most imported pulse variety in India. According to trade analysts, the massive imports have significantly increased domestic supply and availability, which is affecting the demand, consumption, and pricing of other pulses. There is a growing demand to control the influx of yellow peas through customs duty.
The chairman of the association argues that customs duty should be set at a level where the landed price of yellow peas aligns with the minimum support price (MSP) fixed for desi gram.
The current MSP for gram is Rs 5650 per quintal. It is noteworthy that before the duty-free import allowance was introduced in December 2023, yellow peas attracted a 50 percent basic customs duty.
Over the past year and a half, the duty-free import period for yellow peas has been extended multiple times, with the most recent extension set to expire on 31 May 2025. The chairman asserts that the period should not be extended again and that a minimum 50 percent duty should be reinstated.
However, the government faces a dilemma. It has not been able to procure the expected volume of gram from farmers at the MSP, and thus continues to allow yellow peas as an alternative source.
Peas do not have an officially set MSP and are not purchased by government agencies, making them a practical substitute when gram procurement lags.
India’s dependence on pulse imports continues to grow. In the 2024-25 period, pulse imports surged by around 40 percent compared to 2023-24, reaching a record level of 65 lakh tonnes.
The government has been compelled to allow duty-free imports of tur, urad, gram, lentil, and yellow peas.
While the duty-free import period for tur and urad has been extended by another year and a 10 percent duty has been imposed on gram and lentil, the policy on yellow peas remains uncertain.