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Yellow pea imports hit prices; government urges import curbs


Yellow pea imports hit prices; government urges import curbs

The Ministry of Consumer Affairs has urged the Commerce Ministry to restrict duty-free yellow pea imports, as they are undercutting domestic pulse prices. This move follows concerns raised by the agriculture minister and industry bodies about the impact on local farmers and pulse production.

The Ministry of Consumer Affairs, Food & Public Distribution has written to the Ministry of Commerce advising it to restrict the duty-free import of yellow peas, said a senior official with knowledge of the matter.

Duty-free imports of yellow peas from countries such as Myanmar, Mozambique, Tanzania and Canada are dampening the mandi, or wholesale, prices of key pulses such as tur, urad, masoor and chana, as the commodity's landed cost is lesser than the minimum support price (MSP) and mandi prices of several other pulses.

This is making imported yellow peas a preferred choice for snack manufacturers, hotels and restaurants and several low-income households, affecting the demand for, and therefore prices of, locally produced pulses.

The consumer affairs ministry, which monitors and controls the prices of essential commodities including pulses, has made its recommendation after agriculture minister Shivraj Singh Chouhan wrote to food minister Prahalad Joshi, requesting him to impose at least 50% duty on yellow pea imports to protect the interest of local farmers.

Continuous imports of yellow peas have brought down domestic prices of pulses and will discourage farmers to undertake area expansion of pulses, Chouhan wrote in his letter.

Several industry bodies and trader associations dealing in pulses have also been requesting the government to impose duty on yellow peas.

The government scrapped the import duty on yellow peas in December 2023 to help cool retail inflation in pulses, which had been at least in double digits since June 2023 on account of lower yield of key varieties such as chana, tur and urad for two consecutive years owing to adverse weather conditions.

Despite government efforts, inflation surged 113% in August 2024. Subsequently, the government extended the window for duty-free import of yellow peas multiple times, the latest being in May this year till March 31, 2026.

Meanwhile, the government also announced a six-year 'Mission for Aatmanirbharta (self-reliance) in Pulses' in the interim budget for 2025-26. The mission focuses on tur, urad and masoor, promising to procure 100% of the produce at MSP through the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers' Federation of India.

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