Notice on Market Access for Peas to India
Earlier today, we were advised through the notice at the link below that India is implementing a 50 per cent import duty on imports of peas into India.
We are seeking further information and clarification, but we understand that this means that imports of peas into India, from Canada and other origins, will be subject to a 50 per cent import duty. We expect that the resulting increase in cost of imported peas will have a significant negative impact on pea trade to India. Canada is India’s largest supplier of pulses and India is Canada’s largest market for peas, accounting for more than 40 per cent of Canada’s pea exports.
The import duty on peas comes after the Government of India announced import limits on other crops this summer including tur/arhar (pigeon pea), urad (black matpe), and moong (green gram).
At this time, we are not aware of any changes of India’s import duties on lentils or chickpeas.
Saskatchewan Pulse Growers will keep growers informed as we learn more.
Previous Updates on India Market Access
Canada’s existing fumigation derogation issued July 5, 2017 was set to expire on September 30, 2017. This derogation allows Canadian exports of pulses to India to be exempt from additional inspection fees if shipments are not fumigated with methyl bromide. As of October 2, 2017, official documentation regarding an extension to Canada’s existing fumigation derogation has not been received.
In the time leading up to the September 30 deadline we understand that the Canadian Government has been working closely with the Government of India to provide continued access for Canadian pulse crops to India. Saskatchewan Pulse Growers remains hopeful that an extension will be granted in the near future.
Pulse Canada continues to work with and support the Government of Canada in reaching a long-term resolution in this key Canadian pulse export market. SPG is confident that market access for Canadian pulses to India will continue.
Saskatchewan Pulse Growers invests in market access for a number of reasons. Over the years Saskatchewan has seen some great advancement in pulse crop production. As larger crops come off the field, more of the crop is being exported than ever before.
Over 80% of our production is exported to international markets, which means that growers need to have access to appropriate markets to ensure the industry’s competitiveness going forward.
Since 1997, SPG has partnered with grower groups from other provinces and pulse exporters through our national association, Pulse Canada to tackle issues such as transportation, maximum residue limits, and free trade agreements. Click here to learn more about Pulse Canada’s role.
Maximum Residue Limits
Although the pulse industry in Canada has made significant progress in developing acceptable maximum residue levels (MRLs) globally for pulse crop products used in Canada, growers are still advised to be aware of possible marketing restrictions that may arise from using certain desiccants/harvest management tools.
MRLs are set by CODEX and adhered to by countries around the world. For more information on MRLs in Canada, click here.
Free Trade Agreements
Canadian agriculture is made up of many diverse agricultural sectors. Canada’s large arable land base and small domestic population require the establishment of export markets for the majority of our products.
SPG works together with industry to draw awareness to the importance of advancing Canadian bilateral and regional trade agreements. As such we are constantly assessing which markets are important for Canadian agriculture and why they are important to our industry.
Trade in food products is key to food security and mitigation of food price volatility. Addressing barriers to trade is an important part of the strategy to enhance development of commercial opportunities for subsistence farmers. Tariff barriers that restrict access reduce the value of pulse exports by reducing the price and/or quantity of pulse exports. Non-tariff barriers such as phytosanitary, health, or food safety barriers can create significant costs for the pulse industry, including demurrage, interest charges and re-selling distressed cargo. In cases where market access problems threaten to close markets, there can be devastating impacts on farm gate prices. The cost of tariff and non-tariff barriers is borne by farmers, processors and exporters, but is also borne by importers and consumers in the final destination market, who are ultimately paying more for the product. Creating greater efficiencies by ensuring open access to markets and predictability of trade is of benefit to all members of the value chain, from farmers to the end consumer.