Centre Imposes 10% Import Duty and 20% Cess on Yellow Pea Imports

The Central government has imposed a 30% total levy on yellow pea imports, comprising a 10% import duty and a 20% Agriculture Infrastructure Development Cess (AIDC), effective November 1. 

The move comes ahead of the kharif season as part of efforts to stabilise domestic pulse prices and protect Indian farmers from the impact of cheaper imports.

Policy Decision And Objective

The Ministry of Finance issued a notification confirming the new levy structure, signalling a reversal from the earlier policy that allowed duty-free imports of yellow peas. This revision follows sustained lobbying from farmer associations and industry stakeholders, who claimed that unrestricted imports from countries like Canada and Russia were distorting domestic markets.

It is said the imposition of the combined 30% levy is intended to safeguard the interests of pulse growers, ensure fair price realisation, and reduce excessive dependence on imported pulses. The decision aligns with the Centre’s broader objective of boosting self-sufficiency in key agricultural commodities and promoting farm income stability.

Market Impact And Farmer Concerns

Farmer organisations have long warned that the influx of low-cost yellow peas had depressed market prices, hurting local producers during the crucial harvest window. The new duty is expected to narrow the price gap between domestic and imported pulses, offering much-needed relief to growers in major pulse-producing states such as Madhya Pradesh, Maharashtra, and Uttar Pradesh.

It is anticipated that a temporary rise in pulse prices in the wholesale market will occur due to the reduced inflow of imported stock. Analysts said the measure could help revive domestic procurement and encourage farmers to expand acreage under pulse cultivation.

Read More: Centre Lifts Cotton Import Duty Until September 30 to Support Textile Industry!

Conclusion

By imposing a 30% total levy on yellow pea imports, the government has responded to farmer concerns and taken a protective step to stabilise domestic markets. The move underscores India’s continued focus on supporting pulse production and reducing vulnerability to global price fluctuations.

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