Wednesday, November 8, 2017

India shocks Prairie pea growers

India has lowered the boom on Canada’s pea growers and exporters, suddenly and unexpectedly imposing a 50 per cent tariff on pea imports.

That’s an increase from 10 per cent and puts the tariff at the maximum the World Trade Organization will allow.

What’s more, India has still not clarified whether it will require Canadians to use a banned pesticide to fumigate peas before they’re loaded for shipment to India.

Canadians have argued that not only is the fumigant risky to health, but also not necessary because Canada’s cold winters kill all insects of concern to India’s regulators.

It’s domestic politics that pushed India to hike the tariff. There are so many peas in the country now that prices have fallen to a level that requires the government to offer farmers a subsidy.

India mainly imports peas from Canada, Russia, the United States and France. Last year its imports increased by 41 per cent to a record of 3.17 million tonnes.

This year, Canada had exported only 849,000 tonnes of peas up to the end of October, which is 500,000 tonnes behind the pace last year.

“We’re in contact with Ottawa to understand the operational details of all of this,” said Gordon Bacon of Pulse Canada.


He’s seeking answers to questions such as whether this  has any impact on India’s fumigation rules, do the higher duties apply immediately, and do they apply to peas in ships already on their way.