India reinstates import duty on yellow peas, ending the duty-free regime. The move aims to support domestic farmers but may impact prices and imports.

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India has reinstated import duties on yellow peas, marking the end of its duty-free import policy that had been in place for over a year.

The decision comes after the government opted not to extend the exemption, which expired on February 28, 2025.

The move is expected to have significant implications for domestic pulse producers and importers, as yellow peas accounted for a large share of India’s overall pulses imports in 2024.

Government Confirms End of Duty-Free Regime

India temporarily removed import duties on yellow peas in December 2023 to counter rising domestic prices of pulses.

The exemption was extended thrice, but since there was no new notification for renewal, the duty has been automatically reinstated.

Confirming the decision, Union Minister for Food and Consumer Affairs, Pralhad Joshi, stated:

“We are stopping the duty-free import of yellow peas. This decision will help support domestic pulse farmers and prevent excessive import reliance.”

This means that importers will now have to pay duties on shipments arriving after March 1, which could push up prices in the domestic market.

Expected Import Duty and Market Impact

While an official notification on the exact duty rate has yet to be issued, trade analysts suggest that the government may impose a 15-20% duty.

This move is aimed at curbing excessive imports and encouraging domestic pulse production.

India is one of the world’s largest consumers of pulses, and yellow peas are a substitute for chana (chickpeas) in food processing industries.

Industry experts believe that the return of import duties may lead to higher prices of yellow peas and chickpeas, impacting traders and consumers.

In 2024, India imported nearly 3 million tonnes of yellow peas, representing 45% of the country’s total pulses imports, which stood at 6.7 million tonnes.

With the new duty, imports are expected to decline, creating a potential supply crunch in the coming months.

Industry Reaction and Future Outlook

The reinstatement of import duties has sparked mixed reactions:

Domestic Farmers: The decision is seen as a positive step for local farmers, as it will reduce competition from cheaper imports and stabilize domestic pulse prices.
Importers & Traders: Importers fear the additional duty will increase costs, making yellow peas less competitive and affecting businesses that rely on imported pulses.
Consumers: With potential price hikes, consumers may feel the pinch, mainly as yellow peas are widely used in flour and snack production.

The government is expected to monitor the situation closely and adjust policies to balance supply and demand if necessary.

Meanwhile, market players await an official notification detailing the revised duty structure and its implementation timeline.