Canadian lentil market not yet affected by US and India's duty policy

06-Mar-2025 08:35 PM

The Canadian lentil and pea market is currently experiencing a period of stability despite potential challenges arising from international duty policies.

While the imposition of a 25% customs duty on Canadian peas by the U.S. is expected to have minimal impact due to the limited quantity of exports to that market, the situation with India is more concerning.

India, which was the largest importer of yellow peas from Canada in 2024, has seen its duty-free import period for yellow peas expire, with no extension yet announced.

This could create significant issues for the Canadian market, as India has been a major buyer of yellow peas, and the expiration of the duty-free period could cause a drop in demand, potentially affecting prices and sowing areas.

At the moment, the price of yellow peas in Western Canada remains steady at $10.00-10.50 per bushel, with forward contracts for the upcoming crop priced at around $9 per bushel. Green peas are also holding steady at $16-17 per bushel.

The sowing season for peas is approaching, and if exports to India are heavily impacted, it could lead to a softening of pea prices in Canada and a potential reduction in sowing acreage.

Furthermore, Canadian pea exports to China have weakened, as the country is shifting towards increasing its import of peas from Russia, which could further add to the uncertainty for Canadian producers.

However, markets for green peas and maple peas are expected to remain relatively stable, given the ongoing demand from their respective importing countries.

In summary, while the Canadian lentil market is not yet facing significant disruptions, the evolving situation with India’s duty policies and shifting demand from other countries like China could present challenges for Canadian pea producers in the near future