Duty-free pulse imports continue, farmers at risk of price decline
The duty-free import of pulses, coupled with the arrival of new domestic crops, is likely to push prices below the MSP. As a result, farmers will suffer losses, and efforts to achieve self-sufficiency in pulse production will also be affected.
To control inflation in pulses, the central government has extended the duty-free import period for tur by one year, until March 31, 2026. However, this decision has sparked concerns among pulse-producing farmers, as it contradicts the broader goal of achieving self-sufficiency in pulse production.
Even before the new crop of pulses such as lentils and gram reaches the market, their prices have already fallen below the minimum support price (MSP). Notably, gram and lentils are major pulse crops in Madhya Pradesh, the home state of the Union Agriculture Minister. The continuation of duty-free imports has raised questions about the government’s commitment to protecting farmers' interests.
India imports pulses from several countries, including Myanmar, Australia, Africa, Russia and Canada. A significant portion of tur and urad comes from African nations and Myanmar, while gram, peas, and lentils are sourced from Australia, Russia, and Canada. Currently, all major pulses except moong—including tur, urad, lentils, chana, and yellow peas—are being imported duty-free.
For the ongoing season, the government has set the MSP for gram at Rs 5,650 per quintal, yet market prices have dropped below this threshold. The arrival of the new gram crop next month is expected to push prices down further. Additionally, by the next month around 10 lakh tonnes of grams will be imported from Australia. India imports around 3.5 lakh tonnes tur from Myanmar and seven lakh tonnes from Africa. Over the past year, approximately 28 lakh tonnes of yellow peas have been imported into India. The duty-free import period for yellow peas is currently set to expire on February 28, 2025, but further extensions are likely.
Similarly, the government has set the MSP for lentils at Rs 6,700 per quintal, whereas current market prices range between Rs 5,700 and Rs 5,800 per quintal. Lentils are being imported duty-free from Australia, which could drive prices further downward when the domestic crop arrives in March. The government has extended duty-free imports of urad, gram, and lentils until March 31, 2025, raising concerns as India remains a crucial market for lentil exports from Australia and Canada.
Recently, the government announced that it would procure 100% of tur, urad, and lentils at MSP. However, the effectiveness of this measure remains uncertain, given the continued influx of duty-free imports. The large-scale import of pulses, coupled with the arrival of new domestic crops, is likely to push prices below the MSP, leading to losses for farmers. This could hinder efforts to achieve self-sufficiency in pulse production.