Why This Extend of Duty- Free Import of Yellow Peas?

The Indian government has prolonged the duty-free import window for yellow peas, a popular substitute for chana (gram), by an additional two months until June 30. This extension aims to address potential concerns over food prices, particularly in light of forecasts predicting high temperatures between April and June.

Import Regulations, Monitoring, And Previous Import Policies

Under the recent directive issued by the Directorate General Foreign Trade (DGFT), all imports of yellow peas with a bill of lading dates on or before June 30 must undergo compulsory registration through the online import monitoring system. This measure seeks to regulate and monitor the influx of yellow peas into the country.

Regarding the previous import policy in December, the government initially permitted the duty-free import of yellow peas until March 31, 2024. However, recognizing the continued need for imports beyond the initial deadline, an extension until June 30 has been introduced. This ensures a steady supply of yellow peas, which is crucial for addressing market demands.

Inflationary Pressures and Agricultural Projections

The decision to extend the duty-free import window comes due to the escalating retail inflation rates in pulses. It stood at 18.48% in February, up from 16.06% in January. These inflationary trends have been a significant contributor to overall food inflation in the country.

According to agricultural estimates, the production of chana or gram is projected at 12.1 million tonnes (mt), slightly lower than the previous year's output. Similarly, the estimated production of tur for the current season has been revised downwards to 3.33 mt, potentially impacting market projections.

Imported Yellow Peas to Offset Shortfall And Its Impact On Prices

The market officials anticipate that imported yellow peas will help mitigate potential shortfalls in chana production. They believe it is due to two significant factors. Firstly, it is due to decreased acreage, and secondly, it is due to the adverse weather conditions affecting yields. Therefore, the yellow pea imports are positioned to complement domestic production and stabilize the market.

Presently, market prices for chana exceed the minimum support price (MSP) designated for the 2024-25 season. This disparity emphasizes the significance of duty-free imports in maintaining price stability and ensuring adequate supply to meet market demands.

The government's decision to extend the duty-free import window for yellow peas until June 30 reflects a proactive approach to address potential supply-demand imbalances in the pulses market. By facilitating imports, particularly of yellow peas, authorities aim to mitigate the impact of production shortfalls and inflationary pressures, thereby fostering stability in food prices and ensuring adequate availability for consumers.