India Restores Import Duty on Yellow Peas

India has brought back a 30% import duty on yellow peas. Also adding an extra 10% Agri Infrastructure Fund Cess to reach a total duty of 33%. The duty-free import window, which started on December 8, 2023, ended on February 28, 2025, as the government did not extend it. Now, yellow peas can only enter through the Kolkata port, and the minimum landed price must be USD 2,40 per kg.

Positive Impact on Domestic Pulse Market

The new import duty is likely to boost domestic pulse prices, which fell earlier due to large yellow peas imports. In 2024, India imported about 3 million tonnes of yellow peas, mostly from Canada. These imports had pushed down the prices of pigeon peas, black matpe, and chickpeas. The Indian Pulses and Grains Association had asked the government to reintroduce the duty, saying that duty-free imports were hurting local farmers.

Domestic Market Reactions

Since the import duty was reintroduced, prices in the domestic market have started to recover. Prices increased by over USD 0,18 per quintal, and traders believe the prices of black matpe, chickpeas, and lentils will continue to rise. However, future changes to duty-free imports or customs duties will depend on the Agriculture Ministry's rabi pulses crop production estimates.

Conclusion: Import Duty Brings Stability to Yellow Peas Market

Restoring the import duty on yellow peas aims to stabilize the domestic market and support local farmers. Although importers may face higher costs, the policy promotes fair pricing and limits the negative impact of large imports on the pulses market. Market participants are closely watching for price changes as the new regulations take hold.

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