MARKET UPDATE: India & China

As Canada’s trade discussions with key markets evolve, our work at Pulse Canada continues to focus on maintaining open access for pulses and protecting grower interests in a rapidly changing environment. India and China in particular carry implications for pulse prices, market confidence, and long-term relationships.

India: Keeping Access Open and Relationships Strong

India remains Canada’s largest lentil customer and, in 2024, reemerged as our largest market for peas.

While lentil tariffs currently sit at 10%, in late October, India announced a 30% tariff on peas of all origins effective November 1st. While Canada’s pea export program to India got off to a good start this fall, the recently announced tariff will challenge future sales, and the impact will be felt across the industry.

Pulse Canada’s role and response

As Pulse Canada became aware of possible tariff changes, we acted quickly to engage partners in both Ottawa and New Delhi.

• Pulse Canada staff briefed Canada’s new High Commissioner to India and senior Global Affairs officials to ensure the issue was raised at ministerial levels.

• Meetings with India’s High Commission upheld support for maintaining stable trade.

• Pulse Canada has worked diligently to press for protection of product on water (i.e. en reoute) to mitigate trade disruptions.

Pulse Canada’s goal remains to lock in predictability — keeping India’s door open while securing regulatory improvements that support long-term access.

China: Working to Lift the 100% Pea Tariff

Since March, China has applied a 100% tariff on Canadian peas – a direct response to Canada’s EV, steel, and aluminum measures. The move has sharply reduced exports and lowered prices, highlighting how quickly trade policy directly affects farmgate returns.

Pulse Canada’s role and response

Pulse Canada is leading a coordinated effort to restore access through both diplomatic channels and industry engagement. This began in 2024 — before Canada put its EV measures in place — and has continued right through 2025.

• In June, a coalition of agricultural sectors, including canola, meat, and seafood, undertook joint lobbying efforts to underscore the need for a resolution, and to ensure agriculture remains front and centre in Canada–China discussions.

• Pulse Canada has maintained a strong in-market presence through missions and events, reinforcing Canada’s reputation as a reliable partner and supplier.

• Government-to-government engagement has resumed under the Joint Economic and Trade Commission (JETC), with working groups addressing priority issues.

• Pulse Canada continues to press for removal of the retaliatory pea tariff as a first step, while keeping dialogue open with Chinese buyers.

The focus is on restoring access and rebuilding confidence. By combining advocacy, diplomacy, and customer engagement, Pulse Canada is positioning the sector for recovery once the tariff is lifted. In addition, there is no doubt that our industry needs progress from the federal government on removing tariffs that threaten our competitiveness and damage our global reputation.

Diversifying Markets to Protect Long-Term Value

While maintaining and restoring access in key markets like India and China remains a priority, we’re also focused on broadening demand for Canadian pulses. Our current work includes growing food and feed opportunities in the South and Southeast Asia, expanding pulse use in Europe and across food applications, and developing new opportunities in Latin America. Each of these efforts adds stability by opening new channels for Canadian production.

Looking Ahead

Pulse Canada will continue to work on behalf of growers to protect access, restore confidence, and strengthen the position of Canadian pulses in global trade. As discussions with India, China, and other partners evolve, our focus remains on keeping markets predictable, creating new demand, and ensuring the value of Canadian production is recognized and rewarded.

We will continue to update members as progress unfolds across these and other markets, keeping growers informed as Pulse Canada works to secure lasting opportunity for Canadian production.