Russia benefits from the imposition of 100 percent import duty on Canadian peas in China

20-Mar-2025 01:17 PM

Russia Gains as China Imposes 100% Import Duty on Canadian Peas

Key Developments

• China imposes 100% import duty on Canadian peas from March 20, 2025.
• Canada's pea exports to China at risk of significant decline.
• India extends duty-free import of yellow peas until May 31, 2025, but future extensions remain uncertain.

Russia’s Advantage

• Russia surpasses Canada as China’s largest pea supplier in 2023-24:
  • Canadian pea exports to China: 9.56 lakh tonnes.
  • Russian pea exports to China: 10.90 lakh tonnes.
• Lower-cost Russian peas preferred for animal feed production in China.
• Canadian peas (higher quality) are used for human consumption.

Why China Prefers Russian Peas?

1. Cheaper prices compared to Canadian peas.
2. Faster delivery due to geographical proximity.
3. Trade in Renminbi (CNY) instead of USD, reducing dependency on the dollar.

Future Outlook

• Pea imports from Russia to China expected to rise despite temporary slowdown.
• Canadian pea cultivation may decline due to reduced demand.
• Investment in seed processing plants in China may increase to enhance self-reliance.