India reinstates import duty on yellow peas

India began allowing duty-free import of the pulse from December 8, 2023, and has been extending it. The last extension, up to February 28, 2025, came on December 25, 2024. As per the December 8, 2023, notification, the duty stands restored if no fresh notification is issued. Trade sources said yellow peas will now be subjected to a 30 per cent duty and a 10 per cent Agri Infrastructure Fund Cess (total 33 per cent duty). Also, imports will be permitted through the Kolkata port only, and the landed price should not be below ₹200 a kg. 

“Eventually, the yellow peas monkey is off the back of the pulses trade industry,” said a trade source. The pulse shipments into the country will be allowed only if the bill of lading was issued on or before February 28, 2025. Consignments for which bill of lading have been issued have to reach India before March 31, 2025.

India imported at least 3 million tonnes (mt) of yellow peas, primarily from Canada, in 2024. The huge imports depressed the prices of other pulses such as pigeon peas (tur/arhar), black matpe (urad) and chickpea (gram/chana). The prices of some of these pulses are currently ruling below their minimum support prices.

The trade, led by the Indian Pulses and Grains Association, had urged the Centre to reintroduce the duty regime, saying it was hurting farmers. On the other hand, the trade could seize this opportunity to sell yellow peas at a higher price. 

Prices of pulses have begun to rebound in the domestic market on hopes of the duty-free import regime coming to an end. “Prices increased by over ₹150 a quintal after the duty lapsed. Prices of black matpe, chickpeas and lentils are expected to firm up from here,” the trade source said. 

Trade sources said any decision on extending duty-free imports or cutting customs duty will likely be done after the Agriculture Ministry declares its rabi pulses crop production estimates