Traders say India continues to buy Canadian lentils, potash despite rising diplomatic tensions between the two countries
NEW DELHI, India (Reuters) — Indian buyers do not expect supplies of Canadian lentils and potash to be affected by the diplomatic row between New Delhi and Ottawa, trade, industry and government officials said.
Lentils and potash supplies from Canada have been steady, they said.
Ties between India and Canada deteriorated sharply after New Delhi and Ottawa ordered six diplomats to leave in tit-for-tat moves over Ottawa’s allegations that New Delhi was targeting Indian dissidents on Canadian soil.
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The worsening relations raised concerns over the supplies of lentils and potash from Canada.
India is a leading importer of lentils, which are used to make daal curry and a staple for millions of people.
India also imports potash for its huge agriculture sector, which employs about half of its 1.4 billion people and accounts for nearly 15 per cent of the US$3 trillion economy.
“Indian traders have already placed orders for shipments scheduled for October and November, and these are expected to arrive as planned,” Bimal Kothari, chair of the India Pulses and Grains Association, said referring to lentil imports from Canada.
India imports red lentils from Canada, Australia, Russia and Myanmar. It also imports yellow peas from Canada.
“There has been no disruption in the trade of pulse between Canada and India,” Kothari said.
Consumption of lentils in India has risen to around three million tonnes, but output remains stagnant at about 1.3 million tonnes.
India is the world’s biggest producer of pulse varieties, with a production around 29 million tonnes, but it’s not enough to meet local demand, making New Delhi the biggest importer of pulses.
India has sufficient stocks of pulses and there are no supply disruptions, said a senior government official who didn’t wish to be named.
A senior fertilizer industry official said India continues to import potash as per contracts.
“There has been no change in policy, and we have not received any orders or instructions from the government to stop potash imports from Canada.”
To fertilize crops, India depends on imports for its entire annual consumption of four to five million tonnes of potash. Other than Canada, India ships in potash from Belarus and Russia. Israel and Jordan are other important suppliers of potash to India.
