India Likely to Extend Duty-Free Pulses Imports Amid Iran War and El Niño Concerns

The Indian government is likely to extend the duty-free import window for pulses such as pigeon pea (tur) and black matpe (urad) beyond March 31 as concerns grow over inflation, global supply disruptions and a possible El Niño impact on the monsoon.

The move comes as India faces a shortfall in domestic pulses production, while geopolitical tensions in West Asia are pushing up shipping costs and creating uncertainty in global supply chains.

Industry stakeholders believe extending the duty-free import policy will help stabilise prices and ensure adequate supply in the domestic market.

Duty-Free Import Window May Be Extended

Currently, duty-free imports of tur and urad are allowed until March 31, but trade bodies expect the government to extend the policy due to supply concerns.

India remains deficit in these pulse varieties, making imports crucial for maintaining price stability.

Bimal Kothari, Chairman of the India Pulses and Grains Association (IPGA), said the government is already concerned about inflation risks.

He noted that the ongoing conflict in West Asia could increase freight and insurance costs, as shipping companies may impose higher war-risk premiums.

In addition, the weakening rupee and rising packaging costs are increasing import expenses for traders.

“Even packaging expenses have surged, with polypropylene (PP) bag prices doubling from ₹11 to ₹23 within a week, raising costs by about ₹250 per tonne,” Kothari said.

Domestic Pulses Production Declines

The expected policy extension also follows a decline in domestic pulses production during the current crop year ending in June.

According to second advance estimates, tur production in 2025-26 fell by 4.66% to 34.55 lakh tonnes, compared with 36.24 lakh tonnes last year.

Similarly, urad production has declined in both crop seasons:

• Kharif urad production: 12.06 lakh tonnes, down 10.7% from 13.41 lakh tonnes

• Rabi urad production: 5.08 lakh tonnes, down 8.14% from 5.53 lakh tonnes

The lower output has increased the importance of imports to balance domestic supply.

El Niño Could Impact Monsoon

Another major concern for policymakers is the possible occurrence of El Niño, which could affect India’s monsoon and agricultural output.

Satish Upadhyay, Secretary of the India Pulses and Grains Association, said the government may announce the extension soon.

He added that forecasts by the World Meteorological Organization suggest a higher probability of El Niño conditions this year, which could impact crop production.

Allowing duty-free imports would help prevent supply shortages and keep inflation under control if domestic production declines further.

Trade Awaits Policy Extension

Market participants expect the government to maintain its current import policy for pulses.

Rahul Chauhan of IGrain India said the government is likely to extend duty-free imports for tur and urad because domestic production has declined.

He added that import duties on other pulses are likely to remain unchanged, as prices remain stable.

Currently:

• Chana and masur (lentils) attract a 10% import duty

• Yellow peas carry a 30% duty

B Krishnamurthy, Managing Director of Four P International, said traders are waiting for the government to announce the extension.

“The government should extend OGL imports of pigeon pea and black matpe beyond March as domestic crop availability is limited,” he said.

India’s Pulses Imports Slightly Decline

India’s total pulses imports in calendar year 2025 declined slightly to 65.69 lakh tonnes, compared with 68.75 lakh tonnes in 2024.

The drop was mainly due to reduced imports of yellow peas, although imports of urad, chana and tur increased during the year.

With domestic supply pressures and global uncertainties rising, industry experts believe the government will prioritise maintaining adequate stocks and controlling food inflation.