India Eyes Pulse Tariff Cuts Amid Food Inflation Fears

India is contemplating a reduction in import tariffs for several pulses to address rising food inflation and bolster domestic supplies. The consideration follows concerns over reduced agricultural output due to a patchy monsoon.

A potential tariff adjustment might specifically target lentils and yellow peas, while chickpeas could be excluded. India currently levies a 10% import duty on red lentils and chickpeas and a 30% duty on yellow peas.

The nation, a major global producer, consumer, and importer of pulses, relies on imports to meet demand. Imports constituted approximately 23% of consumption in the 2024-25 period.

Output is expected to decline significantly this year as key pulse-producing states received up to 30% less rainfall than average during the June-September monsoon. Farmers are slated to begin planting chickpeas in October.

This initiative aligns with the government's broader efforts to manage food prices, which have seen reductions in vegetable oil tariffs and adjustments to sugar exports. Food inflation has been on an upward trend since December, standing at 5.95% in August, with pulse prices remaining elevated.