Uncertainty over customs duty in India has made the yellow pea market in Canada quiet

27-Feb-2025 08:36 PM

The uncertainty surrounding the customs duty on yellow peas in India has created a quieter market for yellow peas in Canada.

The duty-free import period is set to end on February 28, 2025, and there has been no formal announcement about its extension.

If the previous duty structure from December 2023 is reinstated, a 55% import duty could be imposed, along with other potential conditions.

Currently, the price of yellow peas in India has remained stable, and the prices of other pulses have softened. Given the situation, it is likely that the Indian government will not continue the duty-free import of yellow peas.

This has led to a decline in imports from both Canada and Russia, as Indian importers have reduced their purchases, and Chinese importers are also buying in limited quantities.

The uncertainty surrounding India's imports could have a ripple effect on Canada's pea market. If imports from India stop, it could influence the sowing of yellow peas in Canada, which typically begins in April.

With the previous price strength driven by Indian demand, Canadian pea prices could soften as a result. Additionally, if export demand decreases, surplus stocks of peas could build up in Canada, potentially leading to challenges in finding new markets for export.

The new pea crop in Canada will be ready for harvest in August-September, further complicating the situation as Canada looks for new export markets.

On the Indian side, the harvest of the new crop of peas is also approaching, which may further impact the dynamics of the market.