In a move to address rising pulse prices, the Indian government has extended its relaxation on import duty for yellow peas by two months. The new deadline for duty-free imports is June 30, 2024, providing much-needed relief for Indian consumers struggling with affordability. Yellow peas, considered a close substitute for chana, are expected to play a key role in moderating overall pulse prices in the country.
Policy Shift and Previous Extensions
This policy shift marks a significant change from the past. In November 2017, a 50% import duty was imposed on yellow peas, along with other pulses, to encourage domestic production. However, recognizing the need for immediate price stabilization due to a projected shortfall in chana output, the government introduced a duty-free regime for yellow peas in December 2023. This initial scheme, valid until March 31, 2024, was further extended for a month in April to ensure continued market stability.
Bridging the Gap: Imports and Impact
The shortfall in chana production is attributed to a combination of factors, including reduced acreage under cultivation and unfavorable weather conditions. To bridge this gap and improve pulse availability, India has already imported around one million tonnes (MT) of yellow peas under this duty-free scheme, primarily from major exporters like Canada and Russia. As yellow peas are a close substitute for chana, this increased supply is anticipated to bring down overall pulse prices, making them more affordable for consumers.
Impact on Procurement and Market Prices
The high market price of chana, currently around Rs 6,000/quintal compared to the government-set minimum support price (MSP) of Rs 5,440/quintal for 2024-25, is posing a challenge for government agencies like Nafed (National Agricultural Cooperative Marketing Federation of India) to carry out MSP procurement operations under the price support scheme. This highlights the need for increased availability of pulses at lower prices.
Looking Ahead: Market Stability and Consumer Relief
The extension of the duty-free regime on yellow peas is a positive step by the government towards controlling pulse prices and ensuring their affordability. This measure, coupled with other potential government initiatives to boost domestic production or release buffer stocks, should bring some relief to the market in the coming months. By increasing the availability of pulses and curbing price hikes, the government aims to ensure food security and provide much-needed financial stability to Indian consumers.
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