Supreme Court Asks Centre To Review Duty-Free Yellow Peas Import Policy Amid Farmers’ MSP Concerns
SC issues notice to Union of India over unrestricted yellow pea imports
The Supreme Court on Friday heard a public interest litigation challenging the Union government’s decision to allow duty-free import of yellow peas, with the petitioner arguing that the policy has adversely impacted domestic pulse farmers by pushing market prices below the Minimum Support Price (MSP).
A Bench led by Chief Justice of India Surya Kant observed that the issue required a broader policy review and suggested that the government convene a high-level meeting of stakeholders to examine the concerns raised by farmers.
The plea was filed by a Mahapanchayat body which contended that permitting duty-free imports of yellow peas until March 2026 has resulted in a surge of cheaper imports, thereby depressing domestic pulse prices and affecting farmers cultivating pulses across several States.
During the hearing, the Chief Justice stressed the need to balance the interests of farmers with consumer requirements and national food policy.
“Please look at the compelling needs of the farming community. Let the government form a high-level committee to look into this,” the CJI observed.
He also referred to the Union government’s ongoing campaigns encouraging diversification of agricultural practices, particularly the shift from water-intensive crops such as paddy to pulses. “We have to see whether we need as much paddy as we are producing. Production of normal paddy is much more than the demand. If that is reduced and the area is used for pulses, there can be a balance,” the CJI said.
The Court emphasised that diversification could help both environmental sustainability and farm incomes, provided that adequate support mechanisms are in place.
Appearing for the Union government, Additional Solicitor General N. Venkataraman defended the policy framework, submitting that the decision to allow imports was taken in response to domestic supply shortages.
“We have a policy. There has been a decrease of about 30 lakh tonnes over three years. Due to shortage, domestic prices increased,” he told the Court.
He added that while imports were initially permitted freely in December 2023, the government subsequently introduced import duties and periodic policy adjustments to maintain price stability.
According to the ASG, a committee is already meeting periodically to review the situation and balance the interests of consumers and farmers.
The Bench noted that the issue highlighted the need for better coordination among different ministries of the Union government.
The Court observed that ministries dealing with agriculture and consumer affairs must work together to promote pulses as a viable alternative to crops like wheat and paddy in northern and central India, and to other crops in southern regions.
It further emphasised that farmers must be assured a reliable platform to sell their produce.
Advocate Prashant Bhushan, appearing in the matter, suggested that such a platform should ideally be linked to the Minimum Support Price (MSP) mechanism to ensure that farmers receive remunerative returns.
The Court observed that an incentivised MSP regime, coupled with timely procurement and price regulation of imported yellow peas, could help ensure that domestic farmers are not adversely affected by international price fluctuations.
The Bench ultimately impressed upon the Union government to convene a meeting of stakeholders to revisit the existing policy framework governing pulse imports.
The Court said that the deliberations should explore a policy regime under which farmers are encouraged to diversify conventional crops toward pulses, while receiving appropriate incentives and price support. “We hope the Ministry will be able to resolve the issue with a new policy regime,” the Court observed.
It directed that the details of the deliberations and the outcome of the stakeholder consultations be placed on record before the Court.
Notably, in September 2025, the court had issued notice to the Union of India in PIL. The bench had taken cognizance of claims that excessive imports have severely depressed domestic prices, harming farmers’ livelihoods. The petitioners had highlighted that the landed cost of yellow peas in India is approximately Rs. 3,500 per quintal, less than half of the Minimum Support Price (MSP) of domestically grown pulses, which hovers around Rs. 8,000 per quintal. This price disparity is forcing Indian farmers to sell their produce at significantly lower prices, disincentivizing cultivation and threatening domestic pulse production.
The PIL by Kisan Mahapanchayat challenges Notification No. 16/2025-26 dated 31 May 2025 issued by the Directorate General of Foreign Trade (DGFT), which permits duty-free import of yellow peas until 31 March 2026. The petitioners argue that the notification is arbitrary and irrational, extending a policy originally intended for only a three-month period under Notification No. 50/2023 issued on 8 December 2023. Seven consecutive notifications have effectively allowed continuous “free” imports since December 2023.
The petition cites that in 2024, India imported a record 6.7 million tonnes of pulses, of which yellow peas accounted for around 2.9 million tonnes. Yellow peas, largely imported from countries like Canada, the US, and Australia, are primarily used as cattle feed abroad but have become a cheap substitute for Indian pulses.
According to the petition, this has caused domestic prices to fall far below MSP, contrary to the government’s own “Mission for Aatmanirbharta in Pulses” launched in February 2025 to enhance domestic production and ensure remunerative prices for farmers.
Case Title: Kisan Mahapanchayat v. Union of India & Ors.
Bench: CJI Surya Kant and Justice Joymalya Bagchi
Hearing Date: March 13, 2026