India has reintroduced a 30% import duty on pulses (such as yellow peas) from the United States, composed of:

1. What India Has Done — In Simple Terms

India has reintroduced a 30% import duty on pulses (such as yellow peas) from the United States, composed of:

10% Basic Customs Duty

20% Agriculture Infrastructure & Development Cess

This comes after several months of duty-free imports, during which cheaper foreign pulses entered the Indian market in large volumes.

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2. Why India Took This Step

a) Protection of Indian Farmers

India has millions of small and marginal farmers dependent on pulse cultivation. Duty-free imports:

Depressed domestic prices

Reduced farm gate income

Disincentivized sowing decisions for future seasons

Reintroducing the duty helps:

Restore price support for domestic producers

Encourage local production

Reduce distress sales

b) Price Stability & Food Security

Pulses are a politically and nutritionally sensitive commodity in India.

Sudden import surges can destabilize markets

The government aims to balance consumer affordability with farmer viability

This duty is a price-stabilization tool, not a permanent trade barrier.

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3. Impact on the United States

a) Concern for American Farmers

India is the largest importer of US pulses, especially yellow peas.

Many US farmers plan acreage and output assuming Indian demand

A sudden duty raises landed costs, making US pulses less competitive

Likely consequences:

Reduced export volumes to India

Pressure on farm incomes

Need to find alternative markets (which are limited in scale)

b) Production Planning Disruptions

Agriculture works on long cycles. Policy shifts:

Create uncertainty

Increase financial risk

Affect planting decisions months in advance

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4. Trade & Diplomatic Implications

a) Short-Term Trade Friction

Global trade experts are right to flag concerns:

US may view this as market unpredictability

Could be raised in bilateral trade dialogues or WTO consultations

However, it is important to note:

India is acting within its tariff rights

Similar protective measures are used by many countries, including the US itself in agriculture

b) Strategic Relationship Likely Intact

India–US relations today are driven more by:

Strategic cooperation

Technology, defense, and geopolitics

Indo-Pacific alignment

A pulse duty alone is unlikely to derail broader relations, though it adds pressure in trade negotiations.

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5. Likely Future Scenarios

Scenario 1: Temporary Measure (Most Likely)

Duty stays until domestic prices stabilize

Could be relaxed again during shortages or inflation spikes

Scenario 2: Managed Imports via Quotas

India may allow limited imports at lower duty

Balances farmer protection with supply needs

Scenario 3: Diversification by US Exporters

US farmers may reduce dependence on India

Push into Southeast Asia, Africa, or domestic processing markets

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6. Bigger Picture Insight

This episode reflects a structural tension:

India prioritizes farmer livelihood and food sovereignty

Exporting nations prioritize market access and predictability

As India’s food policy becomes more assertive, such calibrated protectionism will recur, especially in agriculture.

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Concluding Insight

India’s decision is economically defensive, not politically hostile.

It reinforces a clear message:

> Agriculture remains a sovereign priority, not a fully liberalized trade commodity.