India Extends Duty-Free Yellow Pea Imports Until March 2026 to Stabilize Pulse Prices

Image Source : The Economic Times

The Indian government has extended its duty-free import policy for yellow peas until March 31, 2026, aiming to stabilize domestic pulse prices and ensure adequate supply. The decision, effective immediately, follows a series of previous extensions since the policy was first introduced in December 2023.

Key Highlights from the Policy Extension
- The duty-free import regime was initially set to expire on May 31, 2025, but has now been extended for another ten months.
- India, the world’s largest importer of yellow peas, primarily sources the pulses from Canada and Russia.
- The move is expected to ease inflationary pressures on pulse prices, benefiting consumers and food processors.

Surge in Pulse Imports and Market Trends
- India’s pulse imports reached 6.63 million tonnes in 2024, nearly double the 3.31 million tonnes imported in 2023.
- Yellow peas accounted for 2.9 million tonnes, representing 45 percent of total pulse imports in 2024.
- The country had not imported yellow peas in the previous year, making the current surge in imports a notable shift in trade patterns.

Economic and Trade Implications
- The extension provides relief to traders and food manufacturers, ensuring continued access to duty-free yellow peas.
- The government’s decision aligns with broader efforts to manage food inflation and support domestic agricultural markets.
- Analysts anticipate that the policy will contribute to price stability in the pulse sector, benefiting both consumers and businesses.

Future Outlook and Policy Considerations
- The government may review the impact of duty-free imports on domestic pulse production before making further policy adjustments.
- Trade experts suggest that India’s reliance on yellow pea imports could influence future negotiations with key supplier nations.
- The extension reflects India’s commitment to maintaining a balanced approach to food security and market stability.

Source: Businessworld, Economic Times, The Hindu Business Line.