Gradual decline in dependence on import of pulses from Canada

21-Oct-2024 01:17 PM

Mumbai. The growing diplomatic dispute with Canada is likely to have a profound impact on the import of two major pulses - lentils and peas. It is noteworthy that the relations between the two countries have been deteriorating continuously since the murder of a Canadian citizen in June 2023.

Although the trade relationship has not been affected much so far, but in view of the uncertainty of the future, Indian importers have slowed down the pace of import of lentils and peas from Canada and have also started showing reluctance in entering into import contracts for delivery of remote positions.

Canada has accused India of being involved in the murder of its citizen and has expelled several Indian diplomats. India also termed the Canadian allegation as baseless and ordered the Canadian diplomat to leave the country.

The available data shows that from mid-2023-24, India is trying to gradually reduce its dependence on Canada for the import of these two pulses as it has got two better options in the form of Australia and Russia.

The share of Russia and Ukraine's goods in India's pea imports is increasing while Turkey is also emerging as an important supplier.

As far as lentils are concerned, Australia has now overtaken Canada in its supply to India and may overtake it further in the coming times because Indian importers are preferring to buy lentils from Australia instead of Canada.

This has increased the concern of Canadian lentil producers and exporters. Not only this, but America is also making every possible effort to increase the export of pulses to India.

Falsely accusing India can prove to be costly for Canada because there is no other country that can replace India in the import of lentils and peas.

China is also reducing its dependence on the import of Canadian peas because its relations with Canada are also not good. If the export of Canadian peas to India and China is affected, it can prove to be a big blow for it.