The Indian government is currently scrutinizing the impact of cheaper imports on various farm products, particularly pulses. This reassessment comes amid a growing concern, shared by farmers, that these lower-cost imports might be suppressing domestic agricultural output and fostering an over-reliance on international suppliers. Officials confirmed that agricultural import duties are under active review, highlighting the need to strike a delicate balance between managing consumer inflation and bolstering domestic production.
This strategic re-evaluation is also linked to the current government’s broader initiative to champion ‘swadeshi’ or homegrown products, aiming to strengthen India’s economy, which has faced challenges from global economic pressures, including significant tariffs imposed by the US.
In line with Prime Minister Modi’s ambitious goal to achieve self-sufficiency in key lentils by 2030, the Ministry of Agriculture has been directed to furnish comprehensive projections for pulses. Pulses, being a critical source of protein for a large part of the Indian population and often subject to scarcity, are a focal point of this policy review.
Government sources indicate that a closer collaboration between the agriculture and commerce ministries is anticipated, with the agriculture department expected to provide all necessary data. “We are actively reviewing agricultural import duties. We need to strike a balance between consumer inflation and domestic production,” an official stated.
The current duty structure, which includes zero duties on certain pulse imports, has contributed to lower prices for consumers but, according to analysts and farmers, has also discouraged local cultivation. Farmers report that the prices they receive for their pulse crops often do not meet their expectations for returns, influencing their decisions on crop allocation.
This dynamic directly impacts the acreage dedicated to pulse cultivation and, consequently, the volume of imports required to meet national demand, as domestic supply falls short. The summer-sown area for pulses in the 2025-26 season has shown little growth, remaining stagnant at 12 million hectares compared to 11.9 million hectares in the previous year, despite policy efforts to increase cultivation. Even popular varieties like ‘moong’ (green gram) have seen stagnant acreage.
Specific duties are in place for some pulses, such as a 10% import duty on bengal gram and masoor (yellow lentils) valid until the end of fiscal year 2026. Yellow peas, however, currently attract no duty, with this exemption extended until March 31, 2026.
Analysts suggest that the availability of duty-free imports might have played a role in tempering inflation for certain pulses, leading to negative inflation rates in some instances. A similar pattern is observed in the production of oilseeds, another category of agricultural commodities that India heavily imports.
Moving forward, a more structured approach is planned, involving a panel of economists who will periodically assess production, supply, and availability data to make informed recommendations on import duties for various agricultural items. “Such exercises are always undertaken but the government will do it in a more structured way now,” a second official commented.
Some economic experts contend that policies aimed at curbing consumer inflation, while intended to make food more accessible, may inadvertently exacerbate the scarcity of essential items like pulses and oilseeds. Additionally, frequent market interventions, such as export bans during shortages or the adjustment of import duties, can lead to unforeseen consequences. Economist Ashok Gulati has noted that India’s export restrictions could potentially contribute to global food shortages without significantly lowering domestic prices.
A study indicated that measures to control consumer prices might have reduced farmers’ income by at least ₹45,000 crore in 2023, according to research by economists at the Indian Council for Research on International Economic Relations (ICRIER).