India has made a couple of policy moves that will keep Canadian pulses flowing freely to that key destination for the remainder of the 2006-07 crop year.
As December came to a close, the Indian government extended a temporary measure allowing fumigation for stem and bulb nematodes to take place upon arrival at destination rather than at loading.
That was an important concession for Canadian shippers who would otherwise be shut out of their top pulse market during the winter months when it is too cold to fumigate for the pests at port position.
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The policy, that was set to expire on March 2007, will now be in place until March 2008.
Officials at Pulse Canada are relieved the decision came down before the start of 2007. With the long lead time required to arrange a shipment to India, exporters were nervous that some of the deals they are working on would be at risk.
“It’s going to allow us not to have any potential disruptions in trade,” said Carl Potts, director of market development at Pulse Canada.
That’s a good thing because 2006 sales will likely match the record 790,000 tonnes of pulses shipped to India in 2005 and there are no signs of sales abating in 2007.
Another encouraging development for Canadian shippers happened in November when India extended the deadline for reinstating its 10 percent duty on pulse imports.
India lifted the duty last June after a disappointing harvest in an effort to keep domestic pulse prices in check. It also banned exports of the domestic commodity.
Both measures were to expire in March 2007, but the removal of import duties has been extended until the end of July, which means Canada will be able to access its biggest market duty-free through the end of the 2006-07 crop year.
Potts said part of the reason for the deadline extension is the worldwide shortage of pulses.
Pulse Australia reports large areas of cropland in that country have not been harvested because of low yields or they were converted to animal feed before harvest. The pea crop, while better than other pulses, is expected to yield less than one-third of last year’s production. France also experienced production problems.
“Canada has been one of the countries that has stepped up with increased exports,” said Potts.
Canadian shippers are also making inroads in Pakistan. Exports to that country totalled 175,000 tonnes for the 10-month period of Jan. 1–Oct. 31, 2006.
Previously, the annual average has been about 60,000 tonnes.
Potts said a number of factors are influencing sales to that market, including India’s export ban. Pakistan used to bring in a lot of its pulses from India. It has also been affected by the smaller crops in France and Australia.
“That has created an opportunity for Canadian pulses in Pakistan,” said Potts.
Pulse Canada hopes to negotiate with India a permanent solution to the fumigation issue in 2007.
Canadian exporters are frustrated their shipments continue to be subject to fumigation measures in addition to certification by the Canadian Food Inspection Agency that each shipment is free of stem and bulb nematodes.
Potts said over the last three years only 0.17 percent of pulse crop samples taken by the CFIA have been found to contain the named pests and those shipments were not sent to India.
Pulse industry and government officials are trying to convince Indian regulators that the CFIA certificate should suffice and that fumigation is unnecessary.
