News Capsule: Impact of India’s 30% Import Duty on Yellow Peas
30-Oct-2025 10:36 AM
News Capsule: Impact of India’s 30% Import Duty on Yellow Peas
★ India has imposed a 30% import duty on all yellow pea consignments with a Bill of Lading (BL) date of November 1, 2025, or later.
★ Canada was in dire need of access to the Indian market since China had already closed its doors to Canadian peas. Now, Canada faces high import tariffs in both its largest markets — India and China.
★ China imposed a 100% import duty on Canadian peas in March 2025.
★ These trade barriers have clearly impacted yellow pea prices, which have fallen by up to 34% compared to last year.
★ The United States and other countries have markets for split peas, but Canada lacks sufficient processing capacity for this segment.
★ As a result, a large portion of yellow peas will now be used as animal feed, which could push down prices of competing feed grains like barley.
★ Feed grain markets are already under pressure due to a massive U.S. corn harvest.
★ Yellow pea prices are already at very low levels and may not decline further, but they will have to compete with feed grain prices in the market.
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Impact on India
★ This is a relief for the Indian pulse industry
★ However, a large volume of Canadian peas has already been shipped to India, so there is no immediate concern about existing cargoes.
★ In fact, the concern would have been greater if more shipments had left Canada after the new duty announcement.
★ Now, not just peas, but other pulses are also expected to see an upward trend in prices.