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Pulses at centre of India–US trade friction

Indian farmers have welcomed the decision, with the Government of India clearly stating that the move is aimed at protecting their interests

India has imposed a 30 per cent import duty on certain pulses effective November 1, 2025. Though the tariff aims to curb cheap imports and stabilise prices for Indian pulse growers, this move can be seen as a reciprocal tariff being imposed by India on the US. The move also comes amid broader negotiations with trading partners, including the United States, where pulse crops have been part of tariff discussions.

It is worth noting that imports of tur and urad varieties of pulses are allowed duty-free until March 31, 2026. Currently, the duty on yellow peas is 30 per cent, while on lentils, it is 10 per cent. India imports about 18-20 per cent of its annual consumption of pulses – tur, urad, masoor (lentils), yellow peas and Bengal gram from Canada, Russia, Brazil, Myanmar and Africa.

Protecting farmers’ interest

The Indian government has consistently reiterated that it stands firmly by the side of farmers, particularly in the pulses sector, through a mix of policy support, price assurance, procurement interventions, and import management measures.

India witnessed the launch of the nationwide pulses revolution from Amlaha in Sehore district of Madhya Pradesh under the chairmanship of Union Minister Shivraj Singh Chouhan. The roadmap for the ‘Self-Reliance in Pulses Mission’ was finalised from the Food Legumes Research Centre (FLRP) in Amlaha (Sehore). Chauhan mentioned, “Importing pulses is a matter of shame for us.” Chauhan quoted the Prime Minister as saying that India should also become self-reliant in pulses. “We will not import pulses from outside, but tomorrow we will reach a stage where we export pulses.”

Referring to the research work at the Amlaha institute, the International Center for Agricultural Research in the Dry Areas (ICARDA), and Indian Council of Agricultural Research (ICAR), he said war-level efforts are underway to increase the productivity of masoor, chickpeas, urad, pigeon pea, moong, etc., develop early-maturing varieties, produce improved seeds, and grow disease-free crops, so that farmers profit more from growing pulses.

Eyeing import options only when needed

Pulses are a politically and economically sensitive crop group in India, and import policy has historically been used as a stabilisation tool rather than a permanent trade barrier.

Says Maisam Ali, GPC Global Supply Chain Analyst, “From an Indian producer’s perspective, the 30 per cent tariff on yellow peas is broadly supportive in the near term. After heavy pulse imports in 2024 put pressure on domestic prices, the tariff helps reduce the risk of import-led price suppression during peak arrival periods. The policy improves price visibility for domestic farmers and strengthens their bargaining position within the supply chain.”

Tariffs lead to higher import cost which in turn reduce import competitiveness, supporting elevated domestic prices and farmer margins. Tariffs help to stabilise domestic prices and incentivise higher local production.

Talking on these lines, Arun Raste, Managing Director and Chief Executive Officer of the National Commodity & Derivatives Exchange Limited (NCDEX), mentions, “Domestic farmers might gain better price realisation as importers shift to costlier alternatives — Canada, Australia, or Russia. Globally, surplus US supply may lower prices, while India’s policy aids inflation control by trade balancing. Indian exporters face limited direct impact since India primarily imports pulses, but stabilised domestic output may curb overall imports, indirectly aiding net trade balance.”

To read more, click: https://online.anyflip.com/unmb/iwyd/mobile/index.html

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