India-Canada Relation: Traders restrict lentil imports amid diplomatic row

India-Canada Row: No new contracts for import of lentils are being signed between India and Canada as the diplomatic row escalates, reported Economic Times. This comes as importers are wary of likely retaliatory tariffs that either of the countries could impose.

India-Canada Row: Lentil Imports

In 2022-23 Canada was the biggest supplier of lentils to India with shipments of 485,492 metric tonnes. This accounted for more than half of total imports of the legumes to the country.

"There have been no new contracts...for import of lentils due to the heightened diplomatic tension," a senior executive of a large import-export firm told Economic Times.

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

The traders have also mentioned that the contracts that were signed before the conflict began are being honoured.

Meanwhile, the drop in supply might aide the pulses inflation to rise. Last month the inflation in pulses was at 13%.

India-Canada Tension

The tensions between both countries began last month when Canadian Prime Minister Justin Trudeau raised allegations of India behind the murder of Khalistani activist Hardeep Singh Nijjar. While India has called the allegations absurd, both the countries were involved in expelling the diplomats from their respective countries. Canada has withdrawn 41 diplomats from India amid the dispute.

However neither of the countries had imposed any tariffs to discourage trade. Meanwhile, India has diversified its lentils imports to other nations with Australia turning out to be the biggest gainer. It has also fully exempted lentils imported from the US from any sort of customs duty recently. Countries like Russia, Singapore, Turkey, and the UAE are other import destinations.