Week of Turmoil in the International Markets for Peas and Lentils

11-Mar-2025 02:02 PM

Week of Turmoil in the International Markets for Peas and Lentils
★ China threatens tariffs on peas, while India extends the duty-free period on yellow pea imports. March 7 brought bad news for Canadian yellow peas, but March 10 delivered some relief for Canada.  
★ China has announced that starting March 20, it will impose a 100% tariff on peas imported from Canada. Additionally, this tariff will apply to canola oil and canola meal. The country also plans to impose an extra 25% duty on Canadian pork and aquatic products.  
★ China's move comes in response to the 100% tariff imposed by Canada last year.  
★ In 2024, Canada exported 500,000 tonnes of yellow peas to China, valued at 306 million Canadian dollars. Over the past five years, an average of 1.5 million tonnes of peas were shipped to China annually, amounting to $800 million to $1 billion CAD.  
★ Meanwhile, after several days of silence, the Indian government announced on March 10 an extension of the duty-free import period for yellow peas until May 31. The previous deadline had expired on February 28, creating uncertainty due to the absence of an official statement.  
★ In 2024, Canada exported a total of 2.6 million tonnes of peas, of which 2.09 million tonnes were yellow peas. India purchased 1.42 million tonnes of Canadian pulses, including 1.33 million tonnes of yellow peas.  
★ On the other hand, the Indian government has reinstated a 10% import duty on lentils. Although this is higher than last year's 0% rate, it still signals that India remains open for business.