The possibility that the flow of Saskatchewan-grown lentils to India may slow dramatically or even stop altogether at the end of March is a significant concern for the province’s trade-dependent economy, industry experts say.
The Indian government this week refused to renew an exemption allowing Canadian pulses to be treated for pests on arrival rather than before export, which could affect around $1 billion worth of crops, many of them grown in Saskatchewan.
“Lentils is one of our top products that we export, and India’s one of our top export markets for that product, so it is concerning,” Chris Dekker, head of the Saskatchewan Trade and Export Partnership (STEP), told reporters Tuesday in Saskatoon.
Saskatchewan exported $32.8 billion worth of goods in 2015 — more than half of its GDP — including about $15 billion in agriculture and agri-food products. The province’s lentil exports alone were worth $2.6 billion that year, according to the province.
Unless an agreement is reached, Canadian pulses may need to be fumigated before export, which “may cause difficulties in Canada,” Saskatchewan Pulse Growers said this week. The exemption was created because fumigation does not work well in colder climates.
“India’s our largest market for pulse crops for peas and lentils, so the importance of India can’t be overstated … Ensuring we have ongoing, continual market access is a very important priority for us,” said Saskatchewan Pulse Growers executive director Carl Potts.
Dekker said while there are solutions to the Indian government’s refusal to renew the exemption, including fumigating the crops in Singapore or other markets, that would require time and money, which could raise the price of Saskatchewan-grown pulses.
Source : Leaderpost