Canadian Kabuli Chana exporters worried over possibility of import duty in US
28-Feb-2025 07:33 PM
The news highlights the concerns of Canadian Kabuli Chana (chickpea) exporters regarding the potential imposition of a 25% import duty by the US, which could significantly affect the cross-border trade between the two countries.
This duty, if implemented by the Trump administration in March, would add pressure to Canadian exporters already grappling with various challenges in the business.
The added duty may lead to disruptions in the trade of Kabuli Chana, especially since the sowing season for crops like Kabuli Chana, peas, and lentils is approaching in April.
Canadian Kabuli Chana exporters are facing challenges in managing their business due to the uncertainty caused by the import duty.
The sowing of crops like Kabuli Chana in Canada could be impacted if the US imposes the duty before the planting season begins. This is an important issue because the US is a significant market for Canadian chickpeas.
Additionally, there are reports of a potential import duty on yellow peas in India, as well as a decrease in lentil imports, further complicating the situation for exporters.
The current price of number 2 grade chickpeas in Western Canada is relatively stable at 39 cents per pound for grain with at least 30% 9 mm material.
However, the price for smaller grains is slightly lower by 3-4 cents per pound. There hasn't been significant movement in the market for advance contracts for the new crop,
and reports indicate that prices could range from 32 cents per pound at certain locations. Harvesting of the new chickpea crop is expected to begin in August or September.
With major chickpea-producing countries like Canada, Mexico, India, Russia, and Argentina, all closely monitoring the potential impact of US trade policies, this situation has heightened the concern of Canadian producers and exporters.
The decision of the US government on whether or not to impose the import duty will have far-reaching consequences for the global chickpea market