No duty import of yellow peas, four big decisions in two days to reduce food inflation

The government has made the import of yellow peas duty free. Besides, Agriculture Infrastructure and Development Cess has been completely withdrawn. Currently, there was a 50 per cent duty on import of yellow peas and its minimum import price (MIP) was Rs 200 per kg.

This decision has been taken to control retail prices. The price of yellow peas in the retail market is hovering around Rs 120 per kg. This decision has come into effect from December 8, 2023 and will remain in effect till March 31, 2024. In view of the upcoming Lok Sabha elections, the government's entire focus is on reducing food inflation. For this, four major decisions have been taken in two days.

On December 7, a ban was imposed on making ethanol from sugarcane juice so that the availability of sugar in the domestic market would be better. After that, duty on import of yellow peas was removed so that the retail prices came down. On December 8, a ban on onion exports was imposed and the wheat stock limit for traders, retailers and processors was reduced to half to maintain market availability and prevent prices from rising.

The Revenue Department of the Finance Ministry issued a notification on December 7 informing about the complete removal of import duty on yellow peas. Keeping in mind the interests of domestic farmers, the government in 2019 had decided to impose heavy duty and fix MIP to control pea imports. Due to this the import of yellow peas had almost stopped.

With this decision of the government, now the import of peas is likely to increase rapidly. This is expected to reduce the pressure on consumption of gram and other pulses. At present, the prices of most pulses in the country are rising. Perhaps this decision has been taken in view of the shortage and high prices of pulses.

India imports yellow peas mainly from Canada, Russia and Ukraine. Due to supply disruptions from Russia and Ukraine, it is expected that it may be imported from countries other than Canada. Pea is an important pulse crop of Rabi season, sowing of which has reached the final stage. Its arrival starts in March-April.