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India weighs import duty cuts on red lentils and yellow peas: report

Our read

Any confirmed tariff relief is likely to reach import replacement costs before grocery shelf prices, with chickpeas potentially left outside the cuts.

For operators

Indian grocers and pulse brands should model sourcing and pricing scenarios for potential cuts to the 10% red lentil and 30% yellow pea duties, without assuming implementation.

Watch

An official notification changing pulse duties and specifying effective dates

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The report,

India's government is considering cuts to the 10% import duty on red lentils and 30% tariff on yellow peas to ease food inflation. Chickpea duties may remain unchanged, while food inflation reached 5.95% in August.

Current import duties: yellow peas 30%, red lentils and chickpeas 10% each
  • Yellow pea import tariff30%
  • Red lentil import duty10%
  • Chickpea import duty10%

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Reported figures

From the report. Source details below

2024-25 pulse imports: 7.3 million tonnes
2024-25 domestic pulse production: 25.7 million tonnes
Pigeon peas and black gram duty-free until: March 2027

Why it matters to operators

Explore supply partnerships with red lentil and yellow pea importers, but keep deal valuations independent of unconfirmed tariff savings and assume no relief for chickpeas.

What to watch next

  • Confirmation that the chickpea duty remains unchanged
  • Import booking or arrival data showing stronger lentil or pea volumes
  • Wholesale pulse prices falling ahead of grocery shelf prices
  • Food inflation moving above or below August's 5.95%

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • India's government is likely to keep red lentils and yellow peas at the center of its tariff review, with chickpeas potentially excluded from any relief.
  • Indian pulse importers are likely to seek supplier quotes while holding back some discretionary commitments until duty rates and effective dates are confirmed.
  • Indian pulse wholesalers may reduce forward buying if a tariff announcement points to cheaper incoming stock.
  • Indian grocery retailers are likely to wait for lower replenishment costs before broadly reducing shelf prices, delaying consumer relief.

The counter-case

The case against this reading — not reported by the source.

This is an unconfirmed policy proposal, not a demonstrated retail earnings catalyst. Even if duties fall, higher overseas prices or currency weakness could offset savings, while competition may force retailers to pass relief to shoppers rather than retain margin. Existing inventory could delay benefits, and lower selling prices could dampen nominal sales growth.

The source

Source Read the source at NDTV Profit

Published

Also reported by CNBC-TV18

First seen