Another Headwind for Yellow Peas
The first quarter of the 2025/26 marketing year is now over and the pea market’s performance can be described as good, considering China’s 100% tariffs on Canadian pea imports, but not great. According to the CGC, farmers’ pea deliveries through 13 weeks were 1.13 mln tonnes, below the 5-year average of 1.21 mln and last year at 1.37 mln tonnes. Licensed pea exports totaled 865,000 tonnes, slightly above the 5-year average of 855,000, but trailing last year’s strong pace of 1.05 mln tonnes.
In a “normal” year, this movement of peas wouldn’t be a big concern but the 2025 pea crop is nearly a million tonnes larger than last year, including 700,000 tonnes more yellow peas. Canada needs to export more peas, not less, in 2025/26 to avoid a large buildup in ending stocks. Unfortunately, the Indian government’s recent announcement of a 30% import tariff on yellow peas (from all origins), effective November 1, won’t help the situation.
Several months ago, India announced the 0% import tariffs would remain in effect until March 31, 2026 but backtracked now in an effort to support domestic pea prices ahead of the rabi planting season. This wasn’t a total surprise, as pulse traders and farmers had been pressuring the government as pea prices in India continued to slide. The Indian government has a long history of using tariffs, tonnage limits and minimum support prices to influence prices.
These new 30% tariffs on yellow peas (green pea imports have been restricted for years) will have two effects on the Canadian market – export volumes and prices. Canada already exported a large amount of peas to India (and other destinations) this fall, helping offset the loss of China as a customer. Export volumes normally drop off after October, so these Indian tariffs starting in November will have less impact (at least for this year) than if they had happened a few months ago.
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