India-Canada Relation: Canadian farmers bear the brunt as India slows down lentil import

Tensions between India and Canada escalated after Canadian Prime Minister Justin Trudeau accused India of killing Canadian Sikh leader Hardeep Singh Nijjar. Along with diplomatic rift, this move has also put billions of dollars under pressure.

Lentil Import Slows Down

After this irrational claim by Trudeau, India has slowed down the import of lentils from Canada. The Delhi Chamber of Trade and Industry (CTI) had also written a letter to the Centre, urging them to ban import of lentils from Canada to exert economic pressure on it.

Also Read: India-Canada Bilateral Trade: Billions of dollars under threat as diplomatic rift widens

India-Canada Lentil Link

As per Economic Times, India's annual pulse consumption is estimated at around 23 lakh tonnes of which 15-16 lakh tonnes is produced domestically and the rest is imported from other countries. In the last financial year, India imported 4.85 lakh tonnes of lentils from Canada, worth nearly $370 million and more than half of its total lentil imports. That makes Canada a significant player in India's food trade.

Senior export merchant at Winnipeg-based crop trader Parrish & Heimbecker, Kevin Price told Reuters that Indian offers for Canadian supplies have dropped 6% to around $770 per metric ton.

Canadian Farmers To Pay The Price?

India has been diversifying its lentil import. To not be dependent on one country for the product, India has now spread its wing to other countries like Australia and Russia. The import of lentils from Australia has increased to nearly two lakh tonnes, while a consignment from Russia reached Chennai Port in August.

This tension between India and Canada might push the former to wean itself off Canadian lentils, causing price fall in Canada.