Pulse Weekly: Talk arises of India ending duty-free period

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Glacier FarmMedia  — With harvest underway across the Canadian Prairies rumblings has been felt from the other side of the world, specifically in regards yellow peas. There have been recent media reports stating the Indian government is under growing domestic pressure to end its duty-free period on yellow pea imports.

If such were to happen, it would be devastating to Canada’s yellow pea industry and its export program. Months earlier, the government of Narendra Modi set the deadline to either end or extend the duty-free period in March 2026. It’s unclear if that period will be ended sooner or permitted to run out in March.

Pulse Canada

“While we have heard rumours, it’s not uncommon in this industry to hear this kind of policy speculation,” said Greg Cherewyk, president of Pulse Canada in an email to Glacier FarmMedia.

“At the end of the day, it’s the Government of India who make these decisions. Until the industry sees a bulletin directly issued by the government, the previously announced extension is what governs trade,” Cherewyk added.

Over the last number of years, declines in Indian pulse production necessitated the import of crops such as yellow peas from overseas, including those from Canada.

Domestic pulse groups

India’s monsoon rains this year have increased output with domestic pulse groups demanding the end to duty-free imports, said Mike Jubinville, analyst with MarketsFarm.

Jubinville estimated about 90 per cent of Canada’s pulse exports are to India and China. The latter country imposed tariffs on Canadian peas a few months ago, largely shutting out that market. The analyst said the loss of India would be devastating to Canadian growers.

He said yellow peas were C$10 to C$11 per bushel earlier this summer and have dropped to around C$7. Large green lentils fell from about 40 cents per pound to about 23.

“The reality of this is starting to hit big time,” Jubinville stressed.

However, he said he’s holding out some hope.

“In times of desperation, unusual trade patterns can emerge.”

StatCan ending stocks

In other news, Statistics Canada released its stocks as of July 31 report on Sept. 9. For pulses, the 2024/25 carryovers placed lentils at 549,000 tonnes, far greater than the 165,000 tonnes the previous year. Also, pea ending stocks rose to 489,000 tonnes from 299,000 in 2023/24, while that for chickpeas more than doubled to 62,000 tonnes.

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