Duty-Free Import of Yellow Peas

India has extended its duty-free import policy for yellow peas under ITC (HS) code 07131010. This extension, which was initially set to expire on December 31, 2024, will now remain in effect until February 28, 2025. The government aims to ensure stable prices and sufficient supply to address ongoing domestic shortages. India is the world’s largest importer of yellow peas. With introduced this policy in December 2023, and it has been extended several times to balance market demand.

India’s Growing Import Needs

The Indian Association of Grain and Pulse Producers and Importers projects that India will import around 4,7 million tons of pulses during the 2024 fiscal year. For the 2025 fiscal year, imports are expected to range between 4,0 and 4,5 million tons. These numbers highlight India’s increasing reliance on imports to meet its growing demand for pulses, particularly yellow peas.

Canada and Russia Dominate the Market

India’s pulse market remains competitive, with Canadian yellow peas gaining popularity among Indian importers due to better pricing and quality compared to Russian alternatives. However, Russia has increased its exports to India, possibly reaching 1,0 million tons in 2024, making it a key competitor in the yellow pea market. This rivalry between Canada and Russia offers Indian importers multiple sourcing options.

In the 2024/25 marketing year, Ukraine reported a rise in pea production to 465,000 tons, with plans to export up to 400,000 tons. This is a notable increase compared to the 314,000 tons exported in the 2023/24 marketing year. Turkey, Italy, Bangladesh, and India remain the primary buyers of Ukrainian peas, with India accounting for just 9% of Ukrainian exports during the last marketing year. The reduced Indian demand has put pressure on Ukrainian pea prices, though they held steady between USD 0,31 and USD 0,32 per kg, delivered to Black Sea ports.

Ukraine’s Plans to Expand Export Markets

Ukraine is actively negotiating access to the Chinese market, aiming to start exports by January 1, 2025. Success in these talks could provide a significant boost to Ukrainian pea exports and offer relief to domestic producers. Entering the Chinese market would mark a major milestone for Ukraine’s pulse trade, especially amidst evolving global trade dynamics.

Conclusion: A Balanced Import Strategy

India’s extension of duty-free imports ensures price stability and a consistent supply of yellow peas for the domestic market. Importers should carefully monitor the competitive pricing between Canadian and Russian suppliers, as well as global production trends, to make informed purchasing decisions. For farmers and traders, these developments underline the importance of adapting to changing trade policies and exploring diversified sourcing options.





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