Glacier FarmMedia | MarketsFarm — Duty-free exemptions for pea and lentil imports into India are set to end over the next few weeks, but a recent extension for pigeon pea imports has led to speculation that the peas and lentils Canada ships to the country could also see their duty-free status extended.
Canadian pea sales to India have picked up considerably over the past year after India lifted import tariffs on yellow peas in December 2023. The duty-free period has been extended several times over the past year but is set to expire once again on Feb. 28. The last extension at the end of December was made just a week ahead of expiry, although market participants are uncertain what will happen this month. A similar Indian policy on duty-free imports of lentils is set to expire at the end of March.
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MarketsFarm Pro analyst Mike Jubinville noted Indian farmers harvested back-to-back pigeon pea crops that were far from ideal. He explained that despite the reduced production the Indian government is attempting a balancing act in trying to “pacify” consumers with less costly pigeon peas while still trying to help the country’s massive number of farmers.
However, Indian media outlets reported the latest extension wasn’t going over that well as traders started to hold off buying domestic pigeon peas to wait for cheaper imports.
Added to that, the All India Dal Mill Association demanded the government of Prime Minister Narendra Modi reverse the extension, stating the levy-free period could impact India’s self-sufficiency in pulses. Also, the association said the government needs to raise its payments to farmers for their pulses.
The majority of India’s pulse imports come from Africa, Australia, Canada, Myanmar and Russia.
Although pigeon peas are not lentils, they are quite similar.
Most recently lentil prices across Western Canada have seen very little to no movement. Prairie Ag Hotwire cited Laird lentils at 46.5 to 60 cents per pound, delivered, depending on the size for the week ended Feb. 18. That included a two-cent drop in Laird twos.
Eston lentils were unchanged at 36.5 to 51.5 cents/lb. delivered. Richleas were 32.5 to 53/cents lb. delivered with the twos dipping a penny. Then the Eston lentils saw a half-cent increase is its ones and twos, with prices from 24 to 34.5 cents/lb.
Meanwhile, yellow pea prices on the Canadian Prairies climbed 15 cents at C$9.75 to C$11.40 per bushel delivered, while green peas were unchanged at C$16 to C$17/bu.
