Recent policy decisions by the government, particularly the extension of duty-free imports for yellow peas until March 31, 2026, threaten to replicate the devastating scenario witnessed in our edible oil sector, jeopardising the livelihoods of millions of Indian farmers and our nation’s food security.

Recently, the Union government not only reduced import duty on edible oils from 20 per cent to a mere 10 per cent but also extended the duty-free window for yellow peas. Duty-free import of yellow peas was reintroduced in December 2023 after it was scrapped in 2017. We are already reeling from the consequences of liberal edible oil imports, where a staggering 65 per cent of our vegetable oil consumption is met by foreign supplies, effectively crippling our domestic market.

Before 1990 when edible oil import was under restricted items, our domestic production was 70 per cent with the remaining 30 per cent being imported by the government and sold here.

In 1990, edible oil imports were placed under open general licence. Since then our imports have zoomed to 65 per cent and our domestic production has contracted to 35 per cent. This dependency has made us vulnerable to global price fluctuations and external pressures.

Perilous path

Now, the same perilous path is being trod with pulses. Yellow peas, currently imported at 0 per cent duty, are aggressively substituting traditional Indian staples like chana and tur. The landed cost of these imported yellow peas is a mere ₹3,500 per quintal. This figure is less than half the Minimum Support Price (MSP) of most pulses in India, rendering our farmers’ produce uncompetitive and economically unviable (see Table). With the new Canadian yellow pea crop expected in September, prices are projected to plummet further.

The continued flood of duty-free yellow peas will inevitably decimate our domestic pulses production. Farmers, unable to recover their costs, will abandon cultivation of pulses, leading to a catastrophic decline in self-sufficiency. This over-reliance on imports carries a far greater risk than mere economic downturn. As recent global events have demonstrated, food security is paramount to national security.

It is imperative that we learn from the lessons of the edible oil market and act decisively to protect our agricultural backbone. True food independence can only be achieved when our farmers receive remunerative prices for their hard work. Imposing a significant import duty on yellow peas to make it on par with the MSP of chana is not merely a protective measure; it is a strategic imperative to safeguard our agricultural economy, empower our farmers, and ensure our nation’s resilience against external vulnerabilities.

The writer has over four decades of experience in the agro products sector in South India

Published on July 1, 2025