India extends duty-free import of yellow peas until February 2025

The Indian authorities have extended the current import conditions for yellow peas (within the ITC (HS) code 07131010) from December 31, 2024 to February 28, 2025.

 

The country is the world's largest importer of yellow peas. To control prices for the legume amid shortages, duty-free imports were introduced in December 2023 and have been continuously extended since then.

 

According to estimates by the Indian Association of Grain and Pulse Producers and Importers, in fiscal year 2024, imports of pulses in India will reach 4.7 million tons, and in fiscal year 2025, it will be 4-4.5 million tons. Recall that the fiscal year in the country lasts from April 1 to March 31 of the following year.

 

The Indian market is very competitive. Canada, against the backdrop of the possible end of the import program, has been making significant discounts, which has encouraged importers to buy Canadian peas, the quality of which is better than Russian. However, the Russian Federation has also significantly increased its supply of peas to India, which in 2024 could reach 1 million tons.

 

In the 2024/25 MY, Ukraine increased pea production to 465 thousand tons, of which it will be able to export 400 thousand tons (compared to 314 thousand tons in the 2023/24 MY).

 

In the 2023/24 MY, the main buyers of Ukrainian peas were:

• Turkey – 27% of total exports,
• Italy – 13%
• Bangladesh –12%,
• India - only 9%.

 

The loss of the Indian market negatively affected pea prices in Ukraine, although in the current season they remained at a high level of $310-320/t with delivery to Black Sea ports.

 

Negotiations are currently underway to open the Chinese market for Ukrainian peas, and it is likely that China will allow their import as early as January 1, 2025. If this happens, a significant increase in pea exports will be a significant support for domestic producers.