Important Facts of the News
- Duty free import of yellow peas has been withdrawn.
- From November, a 10% basic import duty will apply on yellow peas.
- An additional 20% Agriculture Infrastructure and Development Cess (AIDC) will be charged.
- Duty was originally removed in December 2023.
- The dal industry had requested the government to reimpose the duty.
- Kharif arrivals are currently at peak in the domestic market.
- Government is purchasing moong, urad and tur at Minimum Support Price in Telangana, Odisha, Maharashtra and Madhya Pradesh.
- The estimated expenditure on procurement, including soybean, may reach Rs 15,095.83 crore.
- Market prices of pulses are currently running below the MSP set by the government.
- Tur is trading below the MSP of Rs 7,550 at around Rs 7,000 per quintal.
- Urad is selling around Rs 6,150 compared to MSP of Rs 7,400 per quintal.
- Moong is selling at around Rs 6,557 compared to MSP of Rs 8,682 per quintal.
Yellow Peas Import Duty: India Restores Tariffs to Stabilise Pulse Prices
India has reinstated import duty on yellow peas, ending the duty-free access that had been in place for several months. The change comes at a time when the arrival of kharif crops is at its peak across key agricultural regions, which has significantly influenced market dynamics.
New Duty Structure Comes Into Effect
The Finance Ministry issued a notification late on Wednesday introducing a 10 percent basic import duty on yellow peas. In addition, a 20 percent Agriculture Infrastructure and Development Cess will also be charged. Yellow peas had been exempt from import duty since December 2023.
Industry Demand and Domestic Price Pressures
The dal industry had urged the government to restore import duties, pointing out that duty-free imports were exerting downward pressure on domestic pulse prices. The latest policy move takes place as procurement of pulses at Minimum Support Price is underway in Telangana, Odisha, Maharashtra and Madhya Pradesh.
Support for Farmers Through MSP Procurement
The government is currently purchasing moong, urad and tur at MSP, and the total financial outlay for procurement including soybean may reach Rs 15,095.83 crore. Despite MSP support, pulse prices continue to remain below official benchmark rates.
Current Market Prices vs MSP
Tur is trading below its MSP of Rs 7,550 per quintal, with market prices around Rs 7,000. Urad is currently priced around Rs 6,150 per quintal compared to an MSP of Rs 7,400. Moong is selling at about Rs 6,557 per quintal, significantly lower than its MSP of Rs 8,682.
The reimposition of duty on yellow peas is expected to reduce the inflow of cheaper global supplies, thereby providing price support to farmers in domestic markets as the harvest enters mandis.