Context: Indian government has recently reimposed import duties on yellow peas after allowing duty-free imports for a limited period. The surge in pulse imports has impacted domestic prices, causing distress among Indian farmers.
Relevance of the topic:
Prelims: Pulses, Import of pulses- Trends
Mains: Pulses- Production, Imports, Challenges
Pulses
- Temperature: Between 20-27°C
- Rainfall: Around 25-60 cm.
- Soil type: Sandy-loamy soil.
- These are the major sources of protein in a vegetarian diet.
- Being leguminous crops, all these crops (except arhar) help in restoring soil fertility by fixing nitrogen from the air. Therefore, these are mostly grown in rotation with other crops.
- Pulses are grown throughout the agricultural year.
- Rabi Pulses (contribute over 60%): Gram (chickpea), Chana (Bengal gram), Masoor (lentil), Arhar (pigeon pea).
- Rabi crops require a mild cold climate during sowing period
- Cold climate during vegetative to pod development
- Warm climate during maturity/harvesting
- Kharif Pulses: Moong (green gram), Urad (black gram), Tur (arhar dal).
- Kharif pulse crops require a warm climate throughout their life from sowing to harvesting.
Recent Government Policies on Pulse Imports
- The government allowed duty-free imports of yellow peas from December 2023 to February 2025, but has now reimposed the duty.
- The duty-free import period for pigeon peas (tur) has been extended until March 31, 2026.
- A decision on chickpeas (chana) and black gram (urad) is awaited.
- The Ministry of Food has recommended reimposing customs duty on lentils, but no notification has been issued yet.
Impact of Duty-free imports on domestic market
- Increased imports: According to trade data, India is estimated to have imported 6.63 million tonnes of pulses in 2024, compared with 3.31 million tonnes in 2023.
- Falling domestic prices:
- Prices of pulses in India have fallen below the Minimum Support Price (MSP) due to increased imports.
- Example:
- Urad prices dropped by 25% from over ₹100/kg since June 2024.
- Pigeon pea (tur) prices fell to $800/tonne from $1,400/tonne in mid-2024.
- Yellow peas prices fell to $450/tonne from $700/tonne when duty-free imports were allowed.
- Benefits to foreign farmers, while Indian farmers struggle:
- Australian and Canadian farmers have benefited from exports, while Indian farmers struggle with lower prices.
- Example: Australian farmers earn ₹160/kg for chickpeas, whereas Indian farmers earn ₹100/kg.
- Impact on Domestic farmers:
- Lower prices may discourage farmers from growing pulses, impacting India's self-sufficiency in food production.
- Farmers may switch to other crops like maize, which is gaining demand due to ethanol production.
Reasons behind India’s dependence on Pulses Imports
According to trade data, India is estimated to have imported 6.63 million tonnes of pulses in 2024, compared with 3.31 million tonnes in 2023.
- Shifting cropping patterns:
- Traditionally, farmers in India practised crop rotation with pulses.
- However, in recent decades, there has been a shift towards cultivating water-intensive cereals like rice and wheat due to the following reasons:
- Rice and wheat are staples in most Indian diets, leading to a rise in consumption demands.
- Government incentives like higher margins over the average cost of production in MSPs and assured procurement for these crops.
- Availability of better irrigation facilities in some areas.
- Lower profitability:
- Pulses often offer lower returns per hectare compared to cereals. This discourages farmers from planting them, especially on fertile and irrigated land.
- Climate challenges:
- Erratic rainfall and droughts can negatively impact pulse production, which are generally rain-fed crops.
- Limited technological advancements: Compared to cereals and cash crops, research and development in pulse is limited and higher susceptibility to diseases and pests persist.
India’s Initiatives to boost Pulses Production
1. National Food Security Mission (NFSM)-Pulses:
- Led by Department of Agriculture & Farmers Welfare
- It operates in 28 States and 2 Union Territories including Jammu & Kashmir and Ladakh.
- Interventions under NFSM-Pulses:
- Assistance to farmers through States/UTs for various interventions.
- Cropping system demonstrations.
- Seed production and distribution of HYVs/hybrids.
- Additionally, the establishment of 150 Seed Hubs for Pulses has significantly contributed to increasing the availability of quality pulse seeds.
2. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA) Scheme: comprises three components:
- Price Support Scheme (PSS): Procurement from pre-registered farmers at Minimum Support Price (MSP).
- Price Deficiency Payment Scheme (PDPS): Compensates farmers for price differences.
- Private Procurement Stockist Scheme (PPSS): Encourages private sector participation in procurement.
3. Mission for Aatmanirbharta (self-reliance) in Pulses:
- In Budget 2025, the government announced plans to launch a 6-year mission with a special focus on Tur, Urad and Masoor.
- The Mission will place emphasis on:
- development and commercial availability of climate resilient seeds
- enhancing protein content in pulses
- increasing pulses productivity
- improving post-harvest storage and management
- assuring remunerative prices to the farmers.
- Rs 1,000 crore have been allocated to provide Minimum Support Price (MSP) based procurement and post-harvest warehousing solutions for these 3 pulses.
- Central Agencies (NAFED and NCCF) will procure these 3 pulses, as much as offered during the next 4 years from farmers who register with these agencies and enter into agreements.
4. ICAR's role in research and variety development: ICAR focuses on:
- Basic and strategic research on pulses.
- Collaborative applied research with State Agricultural Universities.
- Development of location-specific high-yielding varieties and production packages.
- During the period from 2014 to 2023, an impressive 343 high-yielding varieties and hybrids of pulses have been officially recognised for commercial cultivation across the country.
Way Forward: Balanced Approach
- Imposing customs duties on pulses:
- Urgent need to curb imports of chickpeas and lentils to protect domestic farmers.
- A moderate duty on pulses can stabilize prices while preventing excessive dependence on imports.
- Import quotas for future stability: Instead of a blanket duty-free policy, the government should set an import quota and adjust duties based on production estimates.
- Stakeholder consultation for a long-term policy: Engaging farmers, traders, and policymakers to create a stable pulse import policy.
- Supporting farmers with MSP and procurement:
- Strengthening procurement mechanisms to ensure farmers get prices above MSP.
- Promoting pulse cultivation with incentives and better storage facilities.