Import of yellow peas is likely to be affected due to imposition of customs duty and other conditions
03-Mar-2025 03:22 PM
The imposition of customs duty on yellow peas and the end of the duty-free import period are expected to significantly impact both the import market and the domestic prices of pulses in India.
Here’s a summary of the key developments:
End of Duty-Free Import: The deadline for the duty-free import of yellow peas ended on February 28, 2025, and without any further extension notification, imports will now be subject to the standard customs duties. Initially, a duty-free window was provided starting December 8, 2023, with several extensions, but this expired on February 28, 2025.
Customs Duty Reinstated: The previous customs duties, which included a basic import duty of 60% and an agricultural infrastructure cess of 10%, will now apply to yellow peas. This totals a 66% customs duty, significantly raising the cost of importing yellow peas.
Price Impact: The large-scale import of yellow peas, especially from countries like Canada and Russia, caused a sharp decline in the prices of other pulses like gram, tur (tuvar), urad, and lentils. This is partly why industry and trade organizations were urging the government to curb such imports, as the falling prices were impacting domestic farmers and pulse producers.
Effects on Domestic Market: With the end of duty-free imports, the price of yellow peas is likely to rise, while prices for other pulses could also improve. The market is expected to see higher prices for yellow peas, and as the new domestic crop of pulses (like gram and lentil) arrives, their prices may stabilize or even rise due to the reduced competition from cheaper imported yellow peas.
Transitional Rules for Imports: For yellow peas whose bills of lading were issued before the deadline, these consignments will be allowed entry until March 31, 2025. This gives a temporary window for some remaining imports to reach Indian ports.
The combined effect of these changes will be seen in both the domestic pulse market and the broader agricultural landscape in India, with potential price fluctuations in the short term as the supply chain adjusts to the new import regulations.