India slaps new 30 per cent tariff on Canadian yellow peas
Shipping Canadian yellow peas is about to get much more expensive after India announced a hefty tariff on incoming shipments.
According to Reuters, India made the announcement late Wednesday that it will add a 30 per cent import duty on yellow peas. The added duty will go into effect on Saturday, Nov. 1. However, deliveries with the shipment date on or before Oct. 31 won’t be subject to the additional duty.
Previously, the government of India had approved duty-free imports of yellow peas until March 31, 2026. However, the government’s recent decision comes after Indian farmers pushed back as cheap imports kept local prices low. Currently, India is the largest importer of yellow peas, which it mostly buys from Canada and Russia.
However, with India’s import duty soon to take effect, future prices of yellow peas from Canada will be significantly impacted.
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India’s decision comes after China slapped 100 per cent tariffs on Canadian pea imports in March, which is believed to have been in retaliation for Canada’s 25 per cent tariffs on steel and aluminum products, as well as its 100 per cent tariffs on Chinese-made electric vehicles.
In addition to yellow peas, China also announced 100 per cent tariffs on Canadian rapeseed oil and oil cakes, in addition to a 25 per cent duty on aquatic products and pork.
The Chamber of Shipping (COS), the public voice of the marine industry on Canada’s West Coast, calls the government of India’s decision a “major blow” to Canada’s pulse exports.
“The move, driven by pressure from Indian farmer unions, aims to protect local pulse prices,” reads the statement. “Analysts say the duty will likely remain for at least a year, sharply reducing trade volumes and prices.”
According to COS, the price of Canadian yellow pea bids has fallen to approximately $6.95 per bushel, down 34 per cent compared to last year, with many now expected to shift into lower-value feed markets due to limited processing capacity and strong competition from cheaper feed grains.
Editor’s note: An earlier version of this article erroneously stated that this tariff could result in yellow peas becoming more expensive in Canada. The error has been corrected.