India is one of the world's largest importers of pulses, sourcing chickpeas, lentils, pigeon peas, and urad dal from Canada, Australia, Myanmar, and African nations. The pulses import policy India is closely regulated and subject to frequent changes based on domestic production and food security considerations. Understanding the dal import procedure is essential for any business entering this trade.
This guide covers regulatory requirements, duty structure, documentation, and compliance obligations. The pulses import policy can change with minimal notice, making it critical for importers to stay updated on DGFT notifications at all times.
Understanding Pulses Import Policy
India's pulses import policy is frequently revised. Government adjusts restrictions, duty rates, and stock holding limits based on production estimates, market prices, and food security needs. Pulses may be freely importable, restricted, or prohibited depending on conditions.
DGFT issues notifications specifying which pulses can be imported freely. During surplus periods, certain pulses move to the restricted list. Importers must check latest notifications before placing orders.
Registrations Required
IEC from DGFT is mandatory. Apply through Patron Accounting IEC registration. FSSAI Central Import License is required. Get help from Patron Accounting FSSAI service. ICEGATE, AD Code, and GST registration complete the requirements.
For restricted pulses, DGFT import authorization specifying permitted quantity and validity period may be needed.
Step-by-Step Process
Step 1: Verify Current Policy
Check latest DGFT notifications to confirm the pulse variety is freely importable. If restricted, apply for authorization before proceeding.
Step 2: Obtain Registrations
Secure IEC, FSSAI Import License, ICEGATE registration, and AD Code. Ensure active GST registration for input tax credit.
Step 3: Source and Verify Quality
Obtain pre-shipment quality reports. Pulses must comply with FSSAI standards for moisture, broken grain percentage, foreign matter, and pesticide residues. Obtain phytosanitary certificate.
Step 4: Arrange Shipment
Pulses ship in bulk or containerized bags. Ensure proper fumigation before loading. Phytosanitary certificate must accompany documentation.
Step 5: Port Inspection
Plant quarantine and FSSAI inspect and test samples. Consignment is held until results confirm compliance.
Step 6: Customs Clearance
After clearance, file Bill of Entry, pay duties, and arrange delivery. Customs may verify compliance with quantity restrictions.
Documents Required
IEC, FSSAI License, DGFT authorization if needed, commercial invoice, packing list, bill of lading, certificate of origin, phytosanitary certificate, fumigation certificate, Certificate of Analysis, insurance, and Bill of Entry.
Active GST registration is essential for claiming input tax credit on IGST.
Duty Structure
Pulses BCD ranges 0% to 50% depending on variety and policy. IGST generally at 5%. Social Welfare Surcharge at 10% of BCD. Agriculture Infrastructure Development Cess may also apply.
Government uses duty adjustments to control prices. During shortages, duties decrease. During surplus, duties increase. Monitor policy shifts closely.
Storage Compliance
Essential Commodities Act empowers stock holding limits. Non-compliance results in seizure and penalties.
Storage facilities must meet FSSAI food safety standards with proper pest control and moisture management.
Major Pulse Varieties and Sources
India imports several key pulse varieties, each with distinct sourcing patterns. Yellow peas come primarily from Canada and Russia. Chickpeas are sourced from Australia, Canada, and Turkey. Red lentils come mainly from Canada and Australia. Black matpe or urad dal is imported from Myanmar and Mozambique. Pigeon peas or tur dal are sourced from African countries including Mozambique, Malawi, and Tanzania.
Each variety has specific quality requirements for moisture content, broken grain percentage, foreign matter, and uniformity of size. Indian consumers have strong preferences for specific characteristics like colour, cooking time, and taste that may differ from international grading standards. Importers must communicate these preferences clearly to suppliers to ensure the imported product meets market expectations.
Supply Chain and Logistics
Pulse imports involve complex logistics given the large volumes and seasonal nature of production. Most pulses are shipped in bulk vessels or containerised using polypropylene or jute bags of 25 to 50 kg. Transit times from major supplying countries range from 15 days for Southeast Asian origins to 30 to 40 days from Canada and Australia.
Port infrastructure and clearance efficiency significantly impact the overall cost and timeline. Major import ports like Mumbai, Kandla, Chennai, and Kolkata handle the bulk of pulse imports. Importers should factor in potential delays from quarantine inspections and FSSAI testing when planning their supply chain to ensure adequate buffer stock for continuous distribution.
Government Interventions and Buffer Stocks
The Indian government actively intervenes in the pulses market through various mechanisms including duty adjustments, stock holding limits, import restrictions, and procurement operations through national agencies like NAFED. These interventions aim to balance the interests of farmers who need remunerative prices and consumers who need affordable pulses.
Importers must stay updated on government policy announcements that can change import conditions with minimal notice. Building relationships with trade associations and monitoring DGFT notifications regularly is essential for anticipating policy shifts that could impact import operations and profitability.
Quality Grading and Indian Standards
FSSAI has established specific quality parameters for imported pulses that importers must ensure compliance with. These include maximum moisture content of 14% for most varieties, maximum foreign matter of 1%, maximum uric acid content of 100 mg per kg, and limits on pesticide residues based on the Codex Alimentarius standards. Pulses exceeding these limits are rejected at the port and must be re-exported or destroyed.
Indian consumers have strong preferences for specific quality attributes. For instance, tur dal buyers prefer a bright golden colour and uniform grain size. Chana dal consumers look for large, uniformly sized splits with minimal breakage. These preferences may not be reflected in international grading standards, so importers must communicate specific quality parameters to their suppliers through detailed purchase specifications.
Financial Planning for Pulse Imports
Pulse imports involve substantial working capital given the large volumes and seasonal procurement patterns. The payment terms for pulse imports typically involve letters of credit with 30 to 90 day tenures. Importers must arrange adequate banking facilities to cover the CIF value, customs duties, port charges, and transportation costs. The total investment per consignment can run into several crores of rupees.
Margin management requires careful monitoring of global pulse prices, exchange rates, domestic market conditions, and government policy announcements. Professional importers use price risk management tools including forward contracts with suppliers and hedging instruments to protect their margins from adverse price movements.
Emerging Trends in Pulse Import
The pulse import landscape in India is evolving with the introduction of online trading platforms, forward contracts, and quality assurance technologies. Digital platforms are streamlining the connection between international suppliers and Indian buyers, reducing intermediation costs and improving price discovery. Blockchain-based traceability systems are being piloted to track pulse consignments from farm to fork.
Organic and specialty pulses represent a growing niche within the import market. Consumer demand for organic dal and heritage pulse varieties is increasing in urban markets, commanding premium prices of 30% to 50% above conventional equivalents. Importers who can certify organic and non-GMO credentials tap into this high-margin segment while differentiating from commodity traders.
