India is almost halfway through its six-week election period, and the Indian government is working to ensure the interests of its people are protected. This may have partly driven India’s decision to further extend tariff cuts on imported peas until October.
Chuck Penner, founder of Leftfield Commodities Research, said India is doing everything it can to keep food costs down for its people, and allowing popular pulse crops tariff-free will help. states that it can be done.
What does that mean for Canadian farmers? It depends on where the duty-free peas come from. Russia is now by far the historically larger player in the pea commodity market, and Australia can also supply India. Still, Penner said the extension of this tariff-free access into the harvest season is likely to support pea prices.
This news has a huge impact on acreage decisions, as other agronomic factors such as seed availability, crop rotation and timing are likely to lock in pea acres for a 24-year growing season. Although it may be too late to have an impact, farmers think pea prices could be a little more firm in the coming months. Prices are unlikely to rise significantly unless China also enters the market for tonnage, Penner said.
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