The Indian government is closely examining the impact of cheaper imports on essential farm produce, particularly pulses. This comes as farmers and government officials voice concerns that these imports might be suppressing domestic production and increasing the nation’s reliance on foreign agricultural markets. The review is partly driven by Prime Minister Modi’s administration’s ongoing “swadeshi” (buy local) campaign, aimed at strengthening the Indian economy amidst global economic pressures, including significant tariffs imposed by the US.
To address the situation, the agriculture ministry has been tasked with providing detailed projections for pulses, a vital source of protein for many Indians. Prime Minister Modi has also set an ambitious goal to achieve self-sufficiency in key lentil varieties by 2030.
Officials indicate a closer collaboration between the agriculture and commerce ministries to re-evaluate agricultural import duties. The goal is to strike a crucial balance between keeping consumer inflation in check and fostering robust domestic agricultural production. Currently, duty-free imports of certain pulses are contributing to lower market prices, which in turn discourages farmers from expanding cultivation. Farmers report that the prices they receive for pulses are often not commensurate with their investment and effort.
This dynamic directly influences the acreage farmers allocate to pulse cultivation, affecting the overall domestic supply and the quantity India needs to import. For instance, the summer-sown area for pulses in the 2025-26 season remained relatively stagnant at 12 million hectares, showing little change from the previous year, despite government efforts to boost cultivation. Even popular varieties like moong (green gram) have seen stagnant acreage.
While specific import duties exist for certain pulses like bengal gram and masoor (10% until the end of fiscal year 2026), yellow peas currently face no import duty, a measure extended until March 31, 2026. Analysts suggest that duty-free imports may have contributed to reduced inflation in some pulse categories. A similar pattern is observed in oilseeds, another area where India relies heavily on imports.
Looking ahead, a committee of economists will periodically assess production, supply, and availability data to inform decisions on import duties for various agricultural items. The government plans to adopt a more structured approach to these reviews. Some economists argue that policies focused solely on curbing consumer inflation have inadvertently led to greater scarcity of essential items like pulses and oilseeds, making them less affordable and accessible.
Furthermore, experts point out that frequent market interventions, such as export bans or the implementation of lower import duties, can have unintended consequences. Economist Ashok Gulati suggests that India’s export restrictions might have contributed to global food shortages without significantly lowering domestic prices. A study by economists at ICRIER estimated that measures to control consumer prices may have reduced farmers’ incomes by at least ₹45,000 crore in 2023.