Glacier FarmMedia – Solid exports of Canadian yellow peas to India over the past few months could continue for longer, as officials contemplate extending duty-free imports once again.
After India lifted tariffs on yellow pea imports in December 2023, the country has become the top destination for Canadian yellow peas. From August through November, India bought no Canadian yellow peas, according to Statistics Canada trade data and the country has been a non-factor for Canadian yellow pea movement since tariffs were introduced in 2017. However, with the duties temporarily lifted, India imported 331,000 tonnes of yellow peas from Canada in December and January alone, which accounted for 66 per cent of all Canadian yellow pea exports during that period and vaulted India into the second spot behind China for total export demand this marketing year.
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“Yellow pea imports are expected to help offset the anticipated shortfall in the supply of chana as the domestic crop is projected to be lower than that last year on a drop in acreage and weather impacting the yields,” said an unnamed Indian official in an Economic Times article accounting for the likelihood of extending duty-free yellow pea movement.
The initial move by the Indian government to allow duty-free yellow peas was to last until March but has already been extended into April in an effort to temper food inflation in the country ahead of elections happening in April/May. Pulse prices in India remain high, while the country’s own crops have been hampered by moisture concerns and an erratic monsoon.
Spot bids for yellow peas in Western Canada can currently be found as high as C$13.00 per bushel, according to Prairie Ag Hotwire data. That compares with prices that were topping out at C$11.50 in late-November before India entered the market.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.