What Happened
- Reports indicated that India may allow zero-duty import of US-origin masur (lentils) as part of the India-US trade deal framework, though similar treatment is unlikely for other pulses such as yellow peas and Kabuli chana.
- The initial White House fact sheet mentioned "certain pulses" among products to see lower or eliminated tariffs from India; this reference was subsequently removed in a revised fact sheet within 24 hours.
- India's Commerce Minister stated that there were "zero agricultural giveaways" to the US, with farmers shielded in the trade deal — indicating a domestic political sensitivity around agricultural concessions.
- Masur (red lentils) currently attracts a 10% import duty; India recently imposed a 30% retaliatory tariff on US-origin pulses following the broader reciprocal tariff dispute.
- India's pulses import bill increased 46% to $5.48 billion in FY 2024-25, reflecting structural dependence on imports for certain pulse varieties.
Static Topic Bridges
India's Pulses Import Policy and Tariff Structure
India is the world's largest producer, consumer, and importer of pulses. Despite producing approximately 23-25 million tonnes annually, India faces a structural deficit of 3-5 million tonnes, necessitating imports. The government uses a combination of import duties, quantitative restrictions, and stock limits to manage domestic prices and protect farmer incomes.
- India's pulses production (2024-25): approximately 24-25 million tonnes; consumption: approximately 27-29 million tonnes
- Current import duty structure (as of February 2026): Masur (lentils) — 10%; Yellow peas — 30% (from 1 November 2025, after ending a duty-free window); Tur (pigeon peas) and urad (black gram) — 0% (duty-free until 31 March 2026)
- India imposed a 30% retaliatory tariff specifically on US-origin pulses amid the broader tariff dispute
- Major pulse import sources: Canada (lentils, yellow peas), Myanmar (tur, urad), Australia (lentils, chickpeas), Mozambique (tur), US (lentils)
- Policy instruments: Basic Customs Duty (BCD), Agriculture Infrastructure and Development Cess (AIDC), stock limits under the Essential Commodities Act (1955), and import licensing
- The Commission for Agricultural Costs and Prices (CACP) recommends MSP for five major pulses: tur, urad, moong, masur, and gram
Connection to this news: The possibility of zero-duty masur imports from the US — even if limited to lentils — represents a significant concession given that India uses pulse tariffs as a key tool for farmer income protection and domestic price management.
Minimum Support Price (MSP) Mechanism for Pulses
The MSP is the government-guaranteed minimum price at which the government procures agricultural produce from farmers if market prices fall below the support level. For pulses, MSP serves both a production incentive function (encouraging farmers to grow pulses to reduce import dependence) and an income protection function.
- MSP is recommended by CACP (Commission for Agricultural Costs and Prices, under Ministry of Agriculture) and approved by the Cabinet Committee on Economic Affairs (CCEA)
- Since 2018-19, MSP is set at a minimum of 1.5 times the A2+FL cost of production (all paid-out costs plus imputed value of family labour), as recommended by the Swaminathan Commission (National Commission on Farmers, 2004-06)
- MSP for masur (rabi 2025-26): Rs 6,700 per quintal (indicative); procurement is primarily through NAFED (National Agricultural Cooperative Marketing Federation of India) and FCI
- Challenges: Procurement infrastructure for pulses is weaker than for rice and wheat; actual market prices often fall below MSP in producing states, leading to farmer distress
- Buffer stock: Government maintains a buffer stock of pulses (approximately 20 lakh tonnes target) procured at MSP, used for price stabilisation and distribution through PDS
Connection to this news: Zero-duty import of US lentils could depress domestic masur prices below MSP levels, undermining the government's production incentive for pulses and potentially harming lentil growers in Madhya Pradesh, Uttar Pradesh, and Bihar — the major masur-producing states.
WTO Agreement on Agriculture and India's Position
India's ability to impose and adjust agricultural tariffs is governed by its WTO commitments under the Agreement on Agriculture (AoA). India's bound tariffs on most agricultural products are significantly higher than applied tariffs, providing policy space to raise or lower duties as needed.
- India's bound tariff on pulses: 100% (final bound duty); applied duty varies from 0% to 30% depending on the pulse variety and policy objectives
- WTO AoA three pillars: Market Access (tariff bindings), Domestic Support (AMS), and Export Subsidies
- India's aggregate measure of support (AMS) is within the de minimis limit of 10% of the value of agricultural production
- India has invoked the Peace Clause (Bali Ministerial 2013) for its public stockholding programmes (MSP-based procurement) that may exceed AMS limits
- At MC12 (June 2022, Geneva), a permanent solution for public stockholding was not achieved; the issue remains on the WTO agenda
- The India-US bilateral deal operates outside the WTO MFN framework, potentially raising questions about consistency with WTO rules under GATT Article I
Connection to this news: India's large gap between bound tariffs (100%) and applied tariffs (10-30%) on pulses gives it legal space under WTO rules to adjust duties bilaterally with the US, but any preferential concession must navigate the MFN principle unless structured as part of a qualifying FTA under GATT Article XXIV.
Key Facts & Data
- India's pulses import bill (FY 2024-25): $5.48 billion (46% increase year-on-year)
- Current masur import duty: 10%; yellow peas: 30%; tur and urad: 0% (until 31 March 2026)
- India's pulses production: approximately 24-25 million tonnes; deficit: 3-5 million tonnes
- Retaliatory tariff on US pulses: 30%
- MSP for masur (rabi 2025-26): Rs 6,700 per quintal (indicative)
- WTO bound tariff on pulses: 100%; applied tariff: 0-30% (variety-dependent)
- Major masur-producing states: Madhya Pradesh, Uttar Pradesh, Bihar
- CACP recommends MSP; CCEA approves; NAFED procures pulses at MSP
- White House removed pulses reference from revised fact sheet within 24 hours