Pulse crops like peas and lentils generate billions of dollars for the Canadian economy.
Farmer Don Hubble is part of that driving force, but a recent move by one of Canada’s biggest buyers has rattled his industry.
“Historically, India has imported a lot of pulses like peas and lentils from Canada, and to have a 50 per cent duty whacked on all of a sudden really was a shock.”
Canada is the world’s largest exporter of peas. Last year, about 40 per cent of the crop was shipped to India.
“It is the single biggest market that we have — it’s the biggest pulse buyer in the world — so when India changes its domestic policy, it changes it for everything, not just for Canadians but for the market around the world,” said Gordon Bacon, CEO of Pulse Canada.
He added the Indian government opted to go from zero per cent duty, all the way to the maximum allowed under World Trade Organization rules.
“India was left with declining prices, large carry over of stocks, and prices that were below India government’s market support price for producers, so they felt they needed to do something dramatic.”
With the new tariff, growers are expected to cut back on the number of pea crops seeded across Canada in the next growing season.
“It’s an economic decision, right? The price of peas and lentils have come down and farmers need to make money to keep going,” Hubble said.
The Canadian government is now in the hot seat, with many asking what the Liberals will do to secure market access with India.
Foothills MP, John Barlow, addressed the agriculture minister during Question Period on Monday.
“Pulse producers have lost $360 million and they are facing some very difficult decisions as they prepare for next season. The Liberals bet Canada’s farm when they went all in on China, and they lost, and now critical trade agreements, along with alternative market access are in serious jeopardy.”
With uncertainty lingering, it could take a few growing seasons for Canadian farmers to reap what they sow.
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