India has extended a pulse import subsidy designed to boost food supplies and keep prices in check.
The 15 percent subsidy, which was set to expire on March 31, has been extended until Sept. 30.
“It signals India’s continued interest and need to continue to import pulses but also that they’re concerned about price inflation, which we know is a huge political issue there,” said Carl Potts, director of market development with Pulse Canada.
The subsidy will help keep the cost of imported pulses down in a highly price-sensitive Indian market.
“So from a Canadian perspective, I guess it’s good in terms of helping to encourage more exports,” said Potts.
India is Canada’s largest pulse customer. Canadian exporters shipped more than 1.5 million tonnes of peas and lentils there in 2009.
Potts said India’s state-run importers are the ones who receive the loss protection subsidy of up to 15 percent, so they will continue to have a competitive advantage over private sector importers for the next six months.
