India Considers Pulse Import Duty Cuts to Curb Inflation

The Government of India is considering reducing import duties on lentils and yellow peas to increase domestic supplies and combat rising food inflation. This potential policy shift follows a patchy monsoon season that left top producing states with up to 30% less rain than average, threatening the output of domestic pulses.

India currently imposes a 10% import tax on red lentils and chickpeas and a 30% tax on yellow peas. While pigeon peas and black gram are duty-free until March 2027, government sources suggest chickpeas may be excluded from any new tariff cuts. This exclusion aims to encourage farmers to increase planting areas as the October sowing season begins.

Food inflation reached 5.95% in August, with prices for black gram and pigeon peas remaining elevated. The move aligns with previous strategies by the administration of Prime Minister Narendra Modi to stabilize market prices, including prior tariff cuts on vegetable oils and adjustments to sugar exports.