India has extended its zero-duty import regime for pigeon pea (tur) and black matpe (urad) and continued relaxed conditions for yellow pea imports through March 31, 2027, aiming to stabilise domestic prices and secure supplies amid tighter domestic output and elevated freight costs. The move cements India’s role as a structural pulse importer through FY 2026-27 and provides clearer forward visibility to exporters in Canada, Australia, Myanmar and African origins.
Introduction
The Directorate General of Foreign Trade (DGFT) has notified an extension of duty-free import status for tur and urad by one year to March 31, 2027, beyond the previous window that expired on March 31, 2026. Simultaneously, imports of yellow peas will continue to be allowed without the earlier Minimum Import Price (MIP) and without port restrictions, subject to online import monitoring registration.
The policy package follows a year of weaker domestic pulse production and persistent logistics disruptions on key shipping lanes, prompting authorities to prioritise food security and price stability over additional protection for domestic growers. Market participants across the global pulse complex now have a confirmed multi‑year import framework for the world’s largest pulse buyer, reinforcing India’s pull on international trade flows and prices.
🌍 Immediate Market Impact
The duty-free extension for tur and urad effectively caps upside price risk in the Indian market for these two pulses by keeping the import arbitrage open through March 2027. Domestic wholesale prices, which had firmed on concerns over lower 2025-26 production and possible El Niño-related monsoon risk, are likely to see near-term resistance as traders factor in competition from overseas supply.
On the international side, exporters in Myanmar (for urad) and East Africa (for tur) are expected to see improved forward demand visibility and potentially stronger basis levels as Indian buyers step up contracting for the 2026-27 window. The continuation of a 30% import duty on yellow peas, but with MIP and port restrictions removed, should keep yellow peas as a secondary, price-sensitive substitute rather than a direct competitor to duty-free tur and urad, yet still add incremental demand when spreads are favourable.
📦 Supply Chain Disruptions
The policy clarity comes against a backdrop of elevated freight and insurance costs on routes from East Africa and West Asia, where regional conflict and rerouting of vessels have tightened container and bulk availability. By locking in a permissive import regime, New Delhi aims to prevent supply interruptions that could arise if trade houses hesitated to book cargoes under uncertain tariff timelines.
Port and procedural bottlenecks are expected to be limited on the tur and urad side because these commodities already move under an established zero-duty framework. For yellow peas, the removal of port restrictions and the continuation of online import monitoring shift the constraint from physical access to a compliance-based system, which traders regard as manageable but still requiring careful documentation and scheduling to avoid delays at Indian ports.
📊 Commodities Potentially Affected
- Pigeon pea (tur): Direct beneficiary of the extended zero-duty, free-import status; Indian demand will remain structurally import-reliant, supporting export programmes from East Africa and other origins while containing domestic price spikes.
- Black matpe (urad): Similar duty-free treatment ensures continued reliance on Myanmar and other suppliers; tight local output and logistics risks could translate into sustained import volumes and firm international prices.
- Yellow peas: Still subject to 30% duty but with MIP and port restrictions removed, keeping it competitive as a lower-cost substitute for chana and other pulses when global prices are weak relative to Indian values.
- Chana (gram) and lentils (masur): While their basic duty rates remain unchanged, extended access to cheaper imported substitutes like yellow peas may pressure price levels and affect planting decisions and mill demand over time.
- Freight and container markets: Additional pulse flows into India through FY 2026-27 could support demand for containerised and break-bulk capacity on Indo–East Africa, Indo–Myanmar and Indo–Canada lanes.
🌎 Regional Trade Implications
East African exporters of tur, including Tanzania and Mozambique, stand to benefit from assured Indian demand, encouraging acreage and investment in pulse value chains in those origins. Myanmar’s urad sector similarly gains from a locked-in outlet, although ongoing geopolitical and financial system constraints there will continue to influence effective exportable surplus and shipment reliability.
For Canada and other major pea exporters, India’s decision to keep yellow peas dutiable but free from MIP and port limits preserves access while preventing a repeat of the surge volumes seen during earlier duty-free periods. Competing pulse exporters to alternative markets in South Asia and the Middle East may see tighter availability and firmer prices as more cargoes are directed towards India under the extended policy window.
🧭 Market Outlook
In the near term, traders expect a steady pick-up in Indian buying, particularly for urad and tur, as importers move to secure positions before any further escalation in freight or geopolitical risk. Price volatility on Indian exchanges and in physical mandis may moderate as the policy extension reduces uncertainty, but basis swings relative to origin markets are likely as fresh crop and logistics headlines emerge.
Over the next 6–12 months, market focus will remain on India’s 2026 kharif and rabi pulse output, domestic procurement policies, and any further tweaks to tariff lines or quantitative measures as the March 31, 2027 horizon approaches. Should domestic production undershoot expectations, the open import channel could translate into pulse imports above the current 5 million tonne trajectory, amplifying global demand and underpinning prices across the pulse complex.
CMB Market Insight
For commodity traders and industry users, India’s latest DGFT notifications effectively lock in a multi-season import framework that anchors global pulse demand and reduces policy risk in a traditionally volatile segment. Duty-free access for tur and urad, combined with relaxed yellow pea conditions, ensures that international supply will remain central to India’s food-security strategy through FY 2026-27, with corresponding support for export programmes from key origins.
Strategically, participants should recalibrate forward pricing, origin allocation and freight cover on the assumption that India will remain a sizeable net buyer of pulses at least until March 31, 2027. Monitoring domestic crop outcomes, any future duty adjustments on peas and lentils, and evolving logistics costs will be critical to managing margin risk and seizing arbitrage opportunities in this extended policy environment.
