Winnipeg | Reuters — Canada on Wednesday accused India of “discriminatory treatment” against it in a dispute over $1.1 billion worth of Canadian pulse crop exports.
Canada normally ships much of the peas, lentils and other protein-rich pulse crops its farmers grow to India, where they are a staple of many diets.
But earlier this month, India announced a 50 per cent tariff on dry pea imports from all countries, causing prices to fall in Canada, the world’s biggest exporter.
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As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
Canadian shipments to India have also been interrupted by India’s requirement that crops be fumigated for insects in the country of origin.
India normally gives Canada an exemption from the policy, as the country’s cold climate does not allow certain pests to survive, but that exemption expired on Sept. 30.
“Progress has stalled and a solution to this important issue remains elusive,” said a joint statement by Canadian Agriculture Minister Lawrence MacAulay and International Trade Minister Francois-Philippe Champagne, adding that Canada is “deeply concerned and disappointed” with India’s regulatory and tariff decisions.
India has granted exemptions to other exporting countries from the fumigation policy until the end of the year, “indicating that India is applying discriminatory treatment to Canada,” the ministers said.
New Delhi is committed to doubling Indian farmers’ incomes and reducing imports, a senior official with India’s Ministry of Commerce and Industry told Reuters last week.
— Reporting for Reuters by Rod Nickel in Winnipeg.
