Pea Prices Set to Rise

The Indian government planned to restart pea trading on October 16. But recent tensions with Canada are shaking up the market, leading importers to push prices up while releasing some of the stock held at ports. This move has left domestic supplies thin, so we’re looking at a likely price bump of about USD 0,05–0,06 per kg.

Although Indian ports still hold decent stocks of Canadian peas, the government’s freeze on futures trading has made many traders reluctant to sell at lower prices in the spot market. Prices, which were around USD 0,42 per kg, have now crept up to about USD 0,432–0,438 per kg. For sifted, higher-grade peas, the price is even steeper.

Farmers Are Less Interested in Sowing

Farmers in areas like Lalitpur and Jhansi have pulled back on pea sowing this season, responding to lower prices. On top of that, late rains delayed planting, which will likely reduce output further. With the domestic crop still five months away, prices are expected to stay firm until then.

Canada, Diplomatic Strain, and Trade Uncertainty

India depends heavily on Canadian pea imports, but with both countries recalling diplomats, the future of shipments seems uncertain. To add to this, Saudi Arabia has backed out of planned purchases, sparking concerns over future deals. Experts believe these issues will keep pushing up prices for both local and imported peas, depending on quality.

As of now, India has received around 2.2–2.3 million metric tonnes of peas this year. Out of that, traders sold about 1.6 million tonnes due to the lower prices. While stocks remain at ports and with some sellers, prices have firmed up to around USD 0,46–0,47 per kg at ports, while local mandis are quoting closer to USD 0,54 per kg.

Global Pea Production Concerns

Canada, one of the largest pea producers, has also faced reduced sowing and weather issues this year, which may crimp supplies further. Other top pea-growing countries are seeing similar challenges. Despite the current stockpile in India, the diplomatic tensions with Canada could disrupt future imports.

Futures Trading Revival

Futures trading on peas is set to resume tomorrow, with Kanpur as the designated delivery hub, which might drive up market activity. Prices have recently inched up from USD 0,50 per kg to USD 0,52 per kg. Earlier this year, imports surged, peaking at 700,000 tonnes in March, with around 1.6 million tonnes arriving by the end of April. However, since July 20, new import contracts have slowed to a trickle.

Conclusion

With diplomatic strains, lower sowing, and supply challenges worldwide, pea prices look likely to stay strong. The reintroduction of futures trading could push prices even higher, making peas a commodity to keep a close watch on in the months ahead.





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