Chickpeas Prices Set to Rise Due to India’s Import Duty Speculations
Chickpeas Market Anticipates Price Increase
In India, in the last four months chickpeas prices fell by $0,17 to $0,18 per kg. However, the market showed improvement as traders expect the government to reintroduce import duties. Peas, being cheaper than other pulses, may rise by $0,06 to $0,07 per kg as demand increases.India’s Policies Shape Market Trends
Canada is the primary source of imported chickpeas. The Indian government removed import duties on chickpeas to control pulse inflation. Since November, shipments have arrived steadily at most Indian ports. So far, 2.2 to 2.3 million metric tons of chickpeas have landed, and 1.1 million metric tons have already been consumed due to low costs. Chickpeas are currently priced at $0,46 to $0,47 per kg at Indian ports, and local markets are struggling to keep prices below $0,53 per kg. The backlog at ports and warehouses, combined with panic selling, caused a significant price collapse.Expectations of Price Hikes Due to Import Duty Speculations
India's domestic chickpeas harvest remains seven months away, while Canada's crop will arrive in September-October. Import duty waivers are in place until September 30, but the government may impose new duties after this period. As a result, prices could rise by $0,07 per kg this month and potentially climb by $0,12 per kg in the coming months. The market price, which dropped to $0,43 per kg, is now recovering, with prices rising to $0,48 to $0,53 per kg in local markets.Uncertainty in Canada's Crop Raises Concerns
Unfavorable weather in Canada has sparked concerns about its upcoming chickpeas harvest, which will begin in September-October. Traders are already speculating about crop shortages, further contributing to the possibility of rising prices. The government may also introduce a 35% customs duty on peas. The anticipation of this move has already increased buying activity in the markets. Prices of Kabuli chana, which were at $0,50 per kg, have climbed to $0,54 per kg, while peas at Mumbai port have risen from $0,43 to $0,46 per kg.Will Import Duties Be Introduced Soon?
With the expectation of reintroduced import duties, concerns over Canada's crop, and rising demand, the current price of peas presents an opportunity for traders. The market is likely to see further price increases, and investors should consider these trends when making decisions.