Canada’s Pea Cultivation Area Falls 16% Amid Export Uncertainty

01-May-2025 03:32 PM

Ottawa. Contrary to earlier projections by Statistics Canada (Stats Can), the area under pea cultivation in the country is currently 16 percent lower than last year as of the end of April. This drop in acreage comes despite Stats Can’s recent estimate that the production area for peas would increase from 3.21 million acres in 2024 to 3.52 million acres in 2025.

While sowing began on schedule this year, farmers appear to be less enthusiastic about cultivating peas compared to the previous season. The main cause is the growing uncertainty surrounding export demand from the two largest markets for Canadian peas — India and China.

In particular, China has imposed a 100 percent customs duty on the import of Canadian peas, and there have been no visible diplomatic efforts by the Canadian government to resolve the issue. This has led to significant discontent among Canadian farmers, who are seeing one of their largest export markets blocked.

In India, the duty-free import window for yellow peas is set to close on May 31, 2025. There is active lobbying from domestic industry and trade groups urging the Indian government to impose at least a 50 percent import duty afterward. If this proposal is accepted, Canadian yellow peas could lose competitiveness in the Indian market, making exports economically unviable.

If both India and China, two major global buyers, become inaccessible, Canada may struggle to find alternative markets, putting downward pressure on pea prices.

In the domestic market, pea trade in Canada usually remains subdued from April to June, with only limited activity to fulfill short-term demand.

As a result, prices tend to remain stable or slightly weak during this period. The advance contract price for Canadian yellow peas for the upcoming crop has already dropped to between $8.50 and $9.00 per bushel, adding to farmers' reluctance to expand cultivation.