Canadian pea exporters likely to suffer a significant blow
30-Oct-2025 04:17 PM
Saskatoon. The Indian government's imposition of a 30 percent customs duty on yellow pea imports is likely to deal a significant blow to Canadian producers and exporters. India is the largest market for Canadian yellow peas, and if imports decline, Canadian farmers will face significant difficulties in selling their produce at a reasonable price.
To combat the tough competition from Russia and Ukraine, Canada has been forced to significantly reduce its pea export offer price, while Indian buyers may now demand further price reductions.
Canada faces two additional issues: firstly, pea production has improved this year, and secondly, exports to China have virtually ceased due to the hefty 100 percent customs duty imposed on Canadian pea imports.
Like India, China has been a major importer of Canadian peas. If these two major markets close, Canada will be forced to seek new markets, which is no easy task, as no other country has the capacity to meet the shortages in India and China.
Starting November 1st, a 30 percent customs duty will be imposed on yellow pea imports from India, including Canada, if they enter into contracts for the import of yellow peas. Canadian producers and exporters are deeply disappointed by this decision by the Indian government.
Although there is no ban on the import of yellow peas into India and the duty rate is significantly lower than before December 7, 2023, even a 30 percent customs duty is enough to shock Canada.
Yellow pea prices in Canada have already fallen by approximately 34 percent from last year. Typically, farmers reap some benefits at a price of $10 per bushel, while the current price is well below that.
The average price for medium-grade No. 1 yellow split peas was $6.95 per bushel on October 29. Although split peas are in demand in the United States and some other countries, Canada's limited pea processing capacity results in lower lentil production and a preference for exporting whole split peas.