India is reportedly considering guaranteeing long-term pulse purchases from Canada as a potential solution to mitigate the impact of recently imposed tariffs and to ensure a stable supply of this vital commodity. This move comes in response to India's imposition of a 30% import duty on Canadian yellow peas, effective November 1, 2025, a decision that has rattled Canadian exporters already grappling with trade restrictions from China.
The tariff, which India justifies as a measure to protect its domestic farmers and promote self-sufficiency in pulse production, has sparked concerns in Canada, particularly in Saskatchewan, a major pea-growing region. Daryl Harrison, Saskatchewan's Agriculture Minister, has urged federal officials to engage with India to reinstate free trade terms, emphasizing the disruptive impact of such barriers on the entire value chain. Pulse Canada President Greg Cherewyk noted the industry had anticipated a tariff from India but not this quickly. He also noted that prices of yellow peas in Canada have already fallen by over 40% since February 2025, reflecting the severity of market uncertainty.
Despite the tariffs, India has signaled a continued long-term demand for Canadian pulses. According to Indian High Commissioner to Canada, Dinesh Patnaik, the tariff is a balancing act between safeguarding the interests of India's 200 million subsistence farmers and ensuring affordable prices for consumers. Patnaik also confirmed discussions to establish a long-term supply strategy, possibly involving guaranteed sales, led by Premier Scott Moe and supported by Alberta, Manitoba, and the federal government.
Prime Minister Mark Carney met with India's Narendra Modi at the G20 Leaders' Summit in Johannesburg, South Africa, where they agreed to formally launch talks on a Comprehensive Economic Partnership Agreement (CEPA). The agreement would encompass goods, services, investment, agriculture and agri-food, digital trade, mobility, and sustainable development. Pulse Canada supports a CEPA focused on tariff reduction, clear import policies, and a framework that enables innovation, investment, and long-term growth for both countries' pulse sectors.
Pulse crops were Canada's largest export to India last year. In 2024, pulses were Canada's largest export to India, valued at $1.4 billion. From 2000 to 2020, over 50 percent of all pulse imports into India came from Canada. In 2015, India purchased $2 billion of pulses from Canadian farmers.
The potential for guaranteed pulse purchases is viewed as a positive step towards stabilizing trade relations and providing Canadian farmers with some security amidst market volatility. According to Pulse Canada, Canadian growers and exporters have built decades-long relationships across India, and renewed engagement is an important step toward greater market stability, lower barriers, and new opportunities for both countries. A strong and predictable trading relationship is essential to achieving a shared vision of nutritional security.
However, India has stated its intention to end pulse imports by 2029 as the country advances towards self-sufficiency. India consumes 30 million tonnes of pulses a year and produces 25 million tonnes, leaving a five million tonne annual gap that is filled by exporters such as Canada. The government is already taking steps to encourage increased pulse planting.
Despite these challenges, Pulse Canada is taking a more active business-to-business role in continuing trade relationships with customers in China and India.
