Pea prices soften due to better production and weak demand in Canada

22-Aug-2024 01:46 PM

Regina. Although the average yield rate of peas in Canada has come down to around 37 bushels per acre, despite this the total production is expected to be about 18 percent more than last year.

Along with better production, there is a huge pressure of supply of new crop while its foreign (export) demand remains weak. As a result, there is an atmosphere of softening in prices.

On the other hand, with the arrival of new crop of peas in Russia and Ukraine, its supply and availability in the global market has started increasing, due to which Canadian producers and exporters may be forced to reduce or keep the price of their product stable.

Crop harvesting has been completed in Ukraine and the production of 4.55-4.60 lakh tonnes of peas has been estimated there. Crop harvesting is still going on in Russia. New crop of peas is also coming in some countries of the European Union.

Russia is expected to export peas on a large scale to India and China, while China has already been the most prominent buyer of Canadian peas.

After a long period of ban on imports, yellow peas are now being imported into India. India is also going to import most of the peas from Canada and Russia.

Although duty free import of yellow peas has been allowed till 31st October, there is a strong possibility of its extension further.

Currently, the price of yellow peas in Canada on FOB farm basis is $ 9.00-9.35 per bushel, green peas $ 13.00-13.50 per bushel and maple peas are $ 16.50-18.50 per bushel.

India has already imported a lot of yellow peas and a good stock of it is also present in the country.