Farmers Shift to Other Crops From Pea Production

Pea production in India has taken a hit this season, with reports indicating a 70% drop in sowing in Uttar Pradesh and Madhya Pradesh. The unseasonably warm weather has further impacted growth, leading to lower flowering rates. Farmers, discouraged by weak prices, have opted for alternative crops such as tomatoes, cabbage, green chilies, and potatoes, further reducing the area under pea cultivation.

Temperature fluctuations have added to production concerns. Although the cooler weather arrived in December, the heat returned post Makar Sankranti, limiting growth. The new pea crop is slowly arriving in the markets, but supply pressure remains low, keeping prices firm.

Rising Prices at Indian Ports and Delayed Imports

Importers have reacted to the supply crunch by raising prices at ports. After a slow market phase, prices have increased by USD 0,04 per kg, and further gains of USD 0,06 per kg are anticipated this month. Canadian peas were expected to arrive at Indian ports, but price hikes in Canada have resulted in a USD 0,03 per kg increase, stabilizing Indian port prices at USD 0,41 per kg.

Trade dynamics have also shifted due to India's strained relations with Canada. New import deals have been halted, and shipments are now being settled through alternative agreements. With fewer imports expected, traders are refraining from offering spot containers at discounted rates, further tightening the market.

Significant Reduction in Pea Sowing

Pea sowing has seen significant reductions, particularly in the Lalitpur-Jhansi region, where it has dropped by 65-70%. The delayed harvest, caused by late rains, has added to the supply crunch. So far, 2,2-2,3 million tonnes of peas have arrived in the market, with consumption estimated at 1,8-1,9 million tonnes. Stocks remain with some traders and at select ports, but fresh arrivals remain limited.

Importers suggest that lower production estimates in other pea-producing countries could further support price increases. Meanwhile, futures trading for peas has been permitted, with Kanpur designated as a delivery center, potentially influencing price trends.

Conclusion: Prices Set to Strengthen in the Coming Weeks

With supply tightening and import volumes restricted, pea prices are expected to rise by USD 0,06-0,07 per kg soon. The combination of weak production, delayed imports, and shifting market dynamics will likely keep demand strong. Traders and buyers should watch market movements closely as further price gains could materialize in the coming weeks.

Click here to reach our trading platfrom CMBroker