Canada: Chickpeas could help make or break the global pea market

Published 2024년 9월 3일

Tridge summary

The yellow pea market outlook for the rest of the year is largely dependent on political factors, especially India's decision on extending its tariff exemption for pea imports, which ended in October 2024. This exemption was intended to control desi chickpea price inflation but has led to a surge in chickpea prices while yellow peas and other pulses become cheaper. The situation is further complicated by an anticipated large desi chickpea crop from Australia, which could offset India's shortage. Factors such as adverse weather conditions reducing pea production in Russia and the redirection of its crop to non-EU markets like China, India, and Turkey, create a mixed scenario for the global pulse market. The slowdown in India's pea demand and potential impact on Canadian yellow pea exports are also notable. The market dynamics are expected to result in lower prices due to an anticipated surplus of new crop peas.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The yellow pea market hinges on one key factor this year, says an analyst. “The outlook is 80 per cent political, 20 per cent fundamental,” said Greg Kostal, president of Kostal Ag Consulting. India has been a major player in the market, importing 1.85 million tonnes of yellow peas between January and May 2024, according to the Global Pulse Confederation’s (GPC’s) recent Pulse Atlas report on yellow pea prices. However, the country’s temporary exemption on pea import duties is set to expire Oct. 31, 2024. “For (the market) to move higher, you’re going to need to see an extension of that tariff (exemption),” said Kostal. “Otherwise, I think we’ve seen the highs for the year.” The policy measure was implemented to help control desi chickpea price inflation, but that crop continues to rally while most other pulse prices are falling in India, including yellow peas. That is creating a real conundrum for the Indian government. There are a couple of market factors that could help ...

Source: UkrAgroConsult