Uncertain status of customs duty in India has kept the pea market in Canada quiet

24-Jan-2025 05:15 PM

The uncertain status of customs duties in India has indeed created a lull in the Canadian pea market. With India's extension of the duty-free import deadline for yellow peas until February 28, 2025, traders are waiting to see if there will be another extension or if the duty-free window will close, which would impact Canadian exports.

Given India's position as a major buyer, any shift in this policy could have serious consequences for the Canadian pea market, especially as they are facing increasing competition from Russia in key markets like India and China.

The current situation, with falling prices in India and a large stockpile of imported goods, combined with the expected domestic harvest of gram, lentils, and peas, is putting further pressure on Canadian exports.

If the duty-free import for yellow peas isn’t extended, Canadian exporters could be in a difficult position, especially with abundant stock still left.

However, it seems like the market is in a holding pattern for now, with the price of peas in Western Canada remaining stable—yellow peas at $11 per bushel and green peas at $17 per bushel.

Since sowing for the next crop will begin in April and harvesting will occur later in the year, it seems unlikely that sowing areas will significantly change.

This delay and uncertainty are certainly putting Canadian exporters in a tricky spot, but it sounds like they are hoping for clarity soon, especially with the large stock of peas remaining in Canada.