Import of Yellow Peas Likely to Face Customs Duty from June

03-May-2025 11:08 AM

New Delhi. After nearly a year and a half of duty-free import of yellow peas, the government is expected to reinstate customs duties starting June 1, 2025, according to sentiments in the pulses trade and industry sector. This follows seven consecutive extensions of the import duty waiver, the latest of which is set to expire on May 31, 2025.

Why Was Duty-Free Import Allowed?

The Central Government originally permitted duty-free imports in December 2023 to:

  • Boost domestic supply of pulses.

  • Stabilize rising prices of key pulses like tur, urad, masoor, and gram.

Since then, massive volumes of yellow peas—over 32.13 lakh tonnes—have been imported, especially from Canada and Russia, with smaller shipments from Turkey, Ukraine, Latvia, Lithuania, and Spain.

Market Impact:

  • The import outpaced expectations, with:

    • 11.69 lakh tonnes imported in FY 2023–24.

    • A jump to 20.44 lakh tonnes in FY 2024–25.

  • This influx distorted the domestic pulses market, especially Desi gram, as yellow peas substituted it in consumption.

  • As a result, gram prices dropped, weakening the prices of other major pulses.

  • Currently, yellow peas land in India at ₹3400–3550 per quintal, far below the ₹5650 MSP for Desi gram.

Outlook:

The pulse industry believes the original objective of the policy has been achieved and is urging the government to:

  • Withdraw the duty exemption on yellow peas from June.

  • Impose at least 50% customs duty to protect domestic producers.

  • Bring parity with existing 11% duty on lentils and gram.

Current Global Offers:

  • Canada (May-June delivery): $440/tonne

  • Russia (May shipment): $400/tonne

If duties are reinstated, import costs will rise, potentially reviving gram prices and restoring balance in the pulses market.

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