India may import more pulses from US after duty cut
By Sandip Das
India may step up imports of pulses such as yellow peas, lentils (masoor) and kidney beans from the US following duty cuts on ‘certain pulses’ agreed to in the interim trade deal between the two nations, trade sources said.
At present a small quantity of yellow peas, red and green lentils is imported from the US, where prices are higher by 5% to 10% compared to those offered by Canada, Russia and Australia.This makes imports of pulses from the US unremunerative, traders said.
“India will eliminate or reduce tariffs on all US industrial goods and a wide range of US food and agricultural products, including dried distillers’ grains (DDGs), red sorghum, tree nuts, fresh and processed fruit, certain pulses, soybean oil, wine and spirits, and additional products,” the fact sheet released by the White House stated.
What does the joint-statement say on Pulses?
The joint statement between India and the US made no reference to pulses imports. “Once we get clarity on the tariff, we assess whether to step up sourcing pulses from the US,” an importer of pulses told FE.
Imports of tur and urad varieties of pulses are allowed duty-free until March 31, 2026. Currently, the duty on yellow peas is 30% while on lentils, it is 10%. India imports about 18%-20% of its annual consumption of pulses – tur, urad, masoor (lentils), yellow peas and Bengal gram from Canada, Russia, Brazil, Myanmar and Africa.
Yellow peas, used as substitutes of chana (gram) and lentils, are currently imported from Canada and Russia as domestic production is inadequate to meet the demand. Bengal gram is largely imported from Australia.
Trade sources said the US has been pressing for inclusion of exports of lentils and yellow peas at zero duty to India for the last many years.
“India has maintained some of the highest tariffs on the United States of any major world economy, with tariffs as high as an average of 37% for agricultural goods and more than 100% on certain autos,” according to the fact sheet.
Piyush Goyal on lentils
Commerce minister Piyush Goyal on Saturday mentioned ‘lentils’ among the items that have been imported from the US for years and will see tariff cuts. In FY25, India’s pulses imported rose by 46% to $ 5.48 billion compared to 2023-24. Pulses imports from the US accounted for only around $ 89 million last fiscal.
This article has been republished from The Financial Express.