News Capsule: Impact of Tariffs on Canadian Yellow Peas
24-Dec-2025 12:39 PM
News Capsule: Impact of Tariffs on Canadian Yellow Peas
★ In 2025, tariffs imposed by China and India significantly impacted the Canadian yellow pea market, affecting exports and prices.
★ In March 2025, China imposed a 100% tariff on yellow pea imports from Canada, dealing a major blow to exports. China had imported around 500,000 tonnes of yellow peas in 2024, with average annual imports close to 1.5 million tonnes. However, shipments to China in 2025-26 dropped sharply to just 70,400 tonnes.
★ India also created uncertainty in 2025 by frequently changing its import duty policy. While duties were initially suspended due to domestic shortages and rising prices, India reimposed a 30% import duty on yellow peas by the end of October, negatively impacting demand for Canadian supplies.
★ By mid-December, yellow pea prices in Western Canada were trading between C$6.50 and C$7.38 per bushel. During 2025, prices touched a high of C$11.40 and a low of C$5.94 per bushel.
★ Canada’s total dry pea production for 2025-26 is estimated at 3.93 million tonnes, up sharply from around 3.0 million tonnes last year. Due to higher production and weaker export demand, carryover stocks are projected to rise to 1.57 million tonnes.
★ With lower imports into India and reduced sowing domestically, the impact of tight supply conditions may become visible in the coming months, and pea prices could remain firm going forward.