India will reimpose the import duty on chickpeas (chana or gram) from April 1 but the trade is unhappy as it feels it will be too low to discourage imports. The duty, which will come into effect from April 1, 2025, is 10 per cent and comes amidst hopes of a higher crop this year.

According to a notification issued by the Department of Revenue, Ministry of Finance, the duty is being reinstated as the Centre was satisfied that it was necessary in the public interest.

While reinstating the customs duty on chana, the government has decided not to impose any agricultural infrastructure fund cess, which is usually 10 per cent. 

“This 10 per cent customs duty is very nominal and will get absorbed in the price. The imports will continue to take place,” said Bimal Kothari, Chairman, India Pulses and Grains Association. Also, this will give a signal to the Australian farmers to plant more in the upcoming season in June, he said.

The industry was expecting a higher duty to be levied on chickpea imports. The trade has been urging the government to impose at least 25 per cent import duty.

Higher output

The Centre allowed zero duty imports of chickpeas from May 2024 after the crop was affected by unusual weather due to El Nino. However, this year the crop is estimated to be higher at 12.61 million tonnes (mt) this crop year to June against 11.04 mt in 2023-24. 

Besides higher production, India has imported over 1.25 mt of chickpeas, mainly from Australia and Tanzania, between April 2024 and February 2025. During the same time a year ago, imports were a meagre 0.16 mt.

The decision to impose the duty comes at a time when the harvest of the chickpea crop is on and its weighted average price is ₹5,461 a quintal against the minimum support price (MSP) of ₹5,650. However, prices are ruling below the MSP in most agricultural produce marketing committee yards, particularly in Madhya Pradesh and Maharashtra. The move will likely arrest the slide in chana prices and protect the farmers’ interest.

The government has also approved a total purchase of 27.99 lakh tonnes of chana at MSP for the 2025 rabi season. It recently extended the duty-free import window for yellow peas till May 31, 2025. Duty-free imports of yellow peas were opened up in December 2023.

India’s imports of yellow peas are estimated to be over 32 lakh tonnes from December 2023 till December 2024. The huge imports of cheaper yellow peas are also seen weighing on the prices of chickpeas, while hurting the demand for other variety of pulses, according to traders.

Sanjay Kumar, CEO and MD, Rassense Pvt Ltd, said given the good production of chana, the duty will help growers in the near-term. “It is possible that it could create an environment for domestic producers to seize the opportunity to focus on improving yields,” he said.

Published on March 28, 2025