Yellow Peas: Duty-Free Import Extended by Govt Till June

Indian consumers facing high pulse prices can expect some relief as the government extends its duty-free import window for yellow peas by two months. The new deadline for tariff-free imports is June 30, 2024, offering a crucial buffer against the anticipated chana production deficit. Yellow peas, a close substitute for chana, are expected to play a significant role in tempering overall pulse prices in the country.

Policy Shift and Addressing the Shortfall

This move marks a significant shift from the past. In November 2017, a 50% import duty was levied on yellow peas, alongside other pulses, to incentivize domestic production. However, recognizing the immediate need to stabilize prices due to the projected chana output gap, the government implemented a duty-free regime for yellow peas in December 2023. This initial scheme, valid until March 31, 2024, was further extended in April to ensure continued market stability.

Bridging the Gap with Imports

Several factors, including reduced acreage and unfavorable weather conditions, are contributing to the anticipated shortfall in chana production. To counter this gap and enhance pulse availability, India has already imported around one million tonnes (MT) of yellow peas under this duty-free program. These imports primarily came from major exporters like Canada and Russia. This increased supply of yellow peas, a close substitute for chana, is expected to bring down overall pulse prices, making them more accessible for consumers.

Impact on Procurement and Market Equilibrium

The current high market price of chana, hovering around Rs 6,000/quintal compared to the government-set minimum support price (MSP) of Rs 5,440/quintal for the 2024-25 season, is posing a challenge for government agencies like Nafed (National Agricultural Cooperative Marketing Federation of India) to conduct MSP procurement operations under the price support scheme. This situation underscores the critical need for increased pulse availability at lower prices.

Looking Ahead: A Focus on Affordability

The extension of the duty-free regime on yellow peas signifies a positive step by the government towards controlling pulse prices and ensuring affordability. This measure, potentially combined with further initiatives to boost domestic production or release buffer stocks, should bring some relief to the market in the coming months. By increasing pulse availability and curbing price hikes, the government aims to ensure food security and provide much-needed financial stability for Indian consumers.

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