Impact of India’s 30% Import Duty on Yellow Peas

India has imposed a 30% import duty on all shipments of yellow peas with a Bill of Lading (BL) date of November 1, 2025, or later. This move comes at a time when Canada urgently needs the Indian market, as China has already closed its doors to Canadian peas. With this development, Canada now faces high import tariffs in both its largest export markets India and China. Notably, China had imposed a 100% duty on Canadian peas back in March 2025. These trade barriers have had a visible impact on yellow pea prices, which have fallen by up to 34% compared to last year. While markets for split peas (processed yellow peas) exist in the United States and other countries, Canada lacks sufficient processing capacity to meet this demand. As a result, a large portion of Canada’s yellow peas will likely be diverted for animal feed use, putting additional downward pressure on competing feed grains such as barley. Feed markets are already under stress due to a bumper U.S. corn crop, further intensifying competition. Although yellow pea prices are already at very low levels and may not fall much further, they will continue to compete within the feed market at these depressed prices. Impact on the Indian Market For India’s pulse industry, this development is largely positive and reassuring. A significant quantity of Canadian peas had already been shipped before the new duty came into effect, so there is no concern about ongoing shipments. In fact, this policy move may prove beneficial — as without the duty, excess imports could have depressed domestic prices further. Consequently, not only yellow peas but also other pulses in the Indian market are now expected to see upward price movement in the coming weeks.

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