India Imposes 30% Import Duty on Yellow Peas

India has levied a significant 30 per cent import duty on yellow peas, with the new regulation taking effect on November 1. However, a provision offers an exemption for shipments that have a bill of lading dated on or before October 31, 2025. This decision marks a change from the government's prior policy, which had permitted duty-free imports of yellow peas until March 31, 2026. The primary driver behind this policy shift appears to be pressure from domestic farmers. They have been urging the authorities to curb the influx of competitively priced imported yellow peas, which they argue are suppressing local market prices. India is recognized as the world's largest importer of yellow peas, with major supply sources including Canada and Russia.

Impact This import duty is expected to make yellow peas sourced from countries like Canada and Russia more expensive for Indian buyers. This could lead to higher prices for domestic yellow peas, potentially benefiting Indian farmers by improving their profit margins. Conversely, it may increase costs for food processing companies and other industries that rely on imported yellow peas as raw material, potentially affecting their profitability or leading to higher consumer prices for certain products. The overall impact rating on the agricultural commodity market is 6 out of 10.

Definitions of Difficult Terms: Yellow Peas: A type of dried pea, often used in food products, animal feed, and split pea soup. Import Duty: A tax imposed by a government on goods imported into a country. Bill of Lading: A legal document issued by a carrier to a shipper, that details the type, quantity, and destination of goods being carried. It serves as a receipt for the shipment and a contract between the shipper and the carrier.