Duty-free imports of yellow peas may depress local prices
By Sandip Das
The government’s decision to allow duty-free import of yellow peas, used as cheaper substitute of chana, till end of FY26 would hit domestic prices, and force farmers to shift to other remunerative crops, traders and processors fear.
They said that continuance of dumping of the cheap imported yellow peas would keep the mandi prices depressed and would discourage farmers to grow chana, which accounts for about 50% of the country’s pulses production.
“We have urged the government several times to impose atleast 50% import duties on yellow peas so that domestic mandi prices remain stable and farmers are incentivised,” Satish Upadhyay, secretary, India Pulses and Grains Association, told FE.
Currently mandi prices of chana (chickpeas) in Madhya Pradesh and Rajasthan, two key producing states, are ruling in the range of Rs 5200/quintal – Rs 5500/quintal against the minimum support price (MSP) of Rs 5650/quintal for 2024-25 season.
The pulse variety which is currently being imported from Russia and Canada at around $ 360/tonne or around Rs 3400/quintal is being widely used as ‘besan’ (chickpea flour) for making snacks.
Over 3.5 MT of yellow peas have been imported since December 2023. Trade sources said currently around 1 MT of the pulses variety are with importers while domestic production is around 0.45 MT which would be sufficient to meet domestic demand.
Duty free imports were allowed as the government wanted to improve domestic supplies of chana, due to a decline in production in 2023-24 crop year (July-June) to 11 MT from 12.26 MT in 2022-23 crop year.
The agriculture ministry in its third advance estimate has stated chan output at 11.33 MT in 2024-25 crop year, while trade sources said has estimated the output at around 9 MT. Meanwhile the government agencies – Nafed and NCCF have so far purchased 0.29 MT of chana under the MSP against a buffer of 1 MT.
Sources said the government would have built up chana stock through buying from the farmers at market prices.
Earlier Maharashtra Dall Millers Association in a communication to the government had urged for stopping duty free import of yellow peas and restoring import duty of 60% on bengal gram as surge in imports hurting the mandi prices.
The Commission for Agricultural Costs and Prices (CACP) in the price policy for rabi marketing season (2025-26) had recommended a ban on the import of yellow peas by stating that such imports have a negative impact on domestic prices and income of the farmers.
In December 2023, the government had allowed duty free import of yellow peas and the relaxation was extended from time-to-time.
Earlier an import duty of 50% was imposed on the pulses’ variety to encourage domestic production of chana in 2017.
This article has been republished from The Financial Express.