IPGA Says Import Duty on Yellow Peas Will Stabilize Prices, Prevent Further Decline

October 31 — The India Pulses and Grains Association (IPGA) has welcomed the government’s decision to impose an import duty on yellow peas, saying it will help stabilize domestic prices and prevent a further fall in the market. Effective November 1, the government has levied a total tariff of 30 percent on yellow pea imports, comprising 10 percent customs duty and a 20 percent Agriculture Infrastructure Development Cess. The move comes amid growing concerns over a steep decline in global yellow pea prices that was affecting local markets. Bimal Kothari, Chairman of IPGA, said the measure will help control the influx of cheaper imports and curb the downward trend in prices. “The yellow pea market has gone up by just about ₹2 to ₹2.5 per kg after the announcement. The whole idea behind the duty is to contain cheaper imports and stabilize the prices. We were expecting the prices to fall to ₹28–29 per kg, but now that level seems unlikely. Presently, yellow peas are trading around ₹35 per kg,” Kothari noted, adding that there has been no significant impact on prices of other pulses. According to trade data, yellow pea import prices fell from about $375–400 per tonne last year to $300–320 per tonne this season. Kothari explained that even with the new duty in place, the effective landing price remains similar to last year. “Whatever price correction had to happen due to international trends has already occurred. Effectively, with the new duty, the cargo costs us nearly the same as last season,” he said. Traders had initially sought a higher 50 percent duty to further discourage cheap imports and support domestic growers. However, the current 30 percent tariff is expected to keep imports in check while maintaining adequate supply for processors. The pulse industry anticipates that the new duty structure will offer some relief to Indian farmers ahead of the upcoming rabi sowing season, particularly as yellow peas compete directly with chana (gram) and other domestic pulses in the food processing and livestock feed sectors.