IGI Logo

Russia has overtaken Canada as the leading supplier of yellow peas to India, shipping 4.41 lakh tonnes (lt) during the April-July 2024 period, surpassing its total exports for the entire 2023-24 fiscal. In contrast, Canada shipped 3.93 lt to India during the same period. Russia's competitive pricing, offering yellow peas at $425 per tonne for October-November delivery compared to Canada's $460, and the ability to trade in Indian rupees, have contributed to its growing market share. India’s zero-duty import policy has also boosted demand. However, Russia’s yellow peas exports are expected to decline in 2024-25 due to crop issues, while Canada anticipates increased production and exports.

Key Highlights

# Russia exported 4.41 lt of yellow peas to India in April-July 2024.

# Canada shipped 3.93 lt during the same period.

# Russia offers yellow peas at a competitive price and allows rupee trade.

# Indian import duties were reduced to zero, boosting imports.

# Russia’s yellow peas exports are projected to drop in 2024-25.

Russia has emerged as India's top yellow peas supplier, surpassing Canada, which has historically dominated the market. During the April-July period of FY 2024-25, Russia shipped 4.41 lakh tonnes (lt) of yellow peas to India, already surpassing the 4.01 lt it exported in the entire previous fiscal. In comparison, Canada’s shipments stood at 3.93 lt in the same timeframe. Competitive pricing and trade flexibility, including the option to settle payments in Indian rupees, have given Russia a significant edge over Canada.

The price difference is notable, with Russia offering yellow peas at $425 per tonne for October-November delivery, while Canada’s price is higher at $460 per tonne. Additionally, Russia’s logistics prove cost-effective, even though Canadian vessels, with their larger Panamax sizes, offer competitive freight rates. This shift in trade dynamics also comes after India reduced its import duty on peas to zero earlier this year, encouraging a surge in imports.

In terms of broader market activity, Russia's share in the Chinese market also surged after once being dominated by Canada. However, Russia’s yellow peas exports are expected to drop from 3.1 million tonnes in 2023-24 to 2.5 million tonnes in 2024-25, due to crop issues in southern Russia. Meanwhile, Canada anticipates higher production at 3.3 million tonnes, with exports projected to rise.

Finally

With competitive pricing and zero import duty, Russia has outpaced Canada in India’s yellow peas market, though global supply dynamics may shift next year.

Above views are of the author and not of the website kindly read disclaimer