India Extends Duty-Free Import of Yellow Peas to Temper Soaring Inflation
India Extends Yellow Peas Duty-Free Import, Imposes 10% Duty on Lentils to Maintain Pulse Prices
The Indian government has extended the duty-free import of yellow peas by three months, till the end of May, and imposed a 10% duty on imports of lentils (masur) with immediate effect. This move aims to boost domestic availability of pulses and keep prices in check, as the country grapples with shortfalls in local production.
According to an official notification, the government has levied a 5% basic customs duty and 5% Agriculture Infrastructure and Development Cess (AIDC) on lentils, effective from Saturday. This marks a significant shift in India’s tariff policy on pulses, designed to balance supply and demand to curb inflation and encourage domestic production.
India’s yellow peas imports stood at 30 lakh tonnes out of 67 lakh tonnes of overall pulses imported during 2024, indicating a significant reliance on imports to meet local demand. The duty-free import of yellow peas was initially allowed in December 2023 to control local prices, as domestic production of “chana” was falling short. This relaxation was extended until the end of February, and now, it will continue for another three months.
The government’s decision to impose a 10% duty on lentils is aimed at promoting domestic production and reducing dependence on imports. To achieve this, the Centre has procured pulses at minimum support prices (MSP) from domestic farmers under the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) scheme. This initiative, which was continued up to 2025-26, helps farmers get higher prices for their produce.
The government is also committed to purchasing 100% of Tur produced by farmers through central nodal agencies, NAFED and NCCF, as stated in an official statement. Furthermore, the Centre has allowed the procurement of Tur, Urad, and Masur under the Price Support Scheme (PSS) equivalent to 100% of the state’s production for the 2024-25 season. This move is expected to incentivize farmers to increase domestic production and reduce reliance on imports.
Union Minister for Agriculture and Farmers’ Welfare, Shivraj Singh Chouhan, recently announced that the Centre has approved the procurement of Tur (Arhar) in nine states – Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Telangana, and Uttar Pradesh – under the Price Support Scheme for the Kharif 2024-25 season, totaling 13.22 LMT.
Original Source: https://theshillongtimes.com/2025/03/09/govt-extends-duty-free-import-of-yellow-peas-to-keep-inflation-in-check/
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Publish Date: 2025-03-09 14:45:00