Weak demand for peas in China and India will increase Canada's troubles

17-Oct-2024 01:40 PM

Beijing. The latest data from the US Department of Agriculture's Foreign Agricultural Service (USDA Post) shows that during the first half of the current calendar year, pea imports to China declined to 6.57 lakh tonnes, which was 22 percent less than the imports of the same period last year.

According to industry analysts, a very large amount of peas was imported in China during the year 2023, a huge stock of which is still present.

Apart from this, the import of peas there is also being affected due to reasons like fluctuations in monetary rate, increase in sea transportation cost and uncertainty in trade policy.

According to the available data, pea imports in China increased by 64 percent during the year 2023 as compared to the year 2022 and reached a height of 26 lakh tonnes, a large part of which is still present there. Almost the same situation is in India.

Here 20-22 lakh tonnes of peas were imported this year, out of which 7-8 lakh tonnes of stock is still left. In the year 2023, Canada's share in the total import of peas in China was 60 percent and Russia's share was 34 percent. Apart from this, peas were also imported from some other countries including Australia and America.

According to the report of FAS, the import of peas in India increased by 90 percent in the same period. Due to huge imports in these two countries, Canada had to cut the export of peas to other importing countries. But in the current year, there are signs of the situation changing. Due to weak demand in these two top producing countries, Canada is having to look for other markets.

According to an industry analyst, anti-dumping investigation of canola is going on in China, while similar investigations are going on for Chinese products in Canada and America. Pea importers fear that if it is imported in large quantities, then its investigation may also start. Meanwhile, relations between India and Canada have deteriorated.