India's High Commissioner to Canada, Dinesh Patnaik, stated on Friday that both countries are working toward a compromise that would allow Canada to continue exporting peas and lentils to India while also supporting Indian farmers. The announcement came during the annual Western Canada-India Leaders Summit in Regina.
Current Tariff Situation
Saskatchewan farmers are awaiting clarity on whether key agricultural exports to India will continue to face a 30 percent tariff on yellow peas, imposed in November, and a 10 percent tariff on lentils, imposed in March 2025. These duties were introduced by India to boost the value of its own crops. However, ongoing negotiations for a comprehensive free trade agreement between Canada and India could lead to their removal.
Negotiations Progress
Canada and India held their third meeting in Ottawa last week to finalize details of an agreement initiated by Prime Minister Mark Carney and India in November. The deal aims to diversify Canada's economy amid trade uncertainties with the United States. Patnaik emphasized that while both sides seek a sustainable export level for Canada, they must address agricultural sensitivities on both sides.
“What we’re trying to work out is, how do we create a system in which there is a sustainable level which Canada can export every year,” Patnaik said. He noted that negotiations have prioritized areas of agreement, but some issues may remain unresolved. “We may not get an agreement on five percent of the things. We’ll have to find imaginative, different ways to do it. If you can’t do it, we’ll drop it on the side and go ahead with the 95 percent.”
Industry Perspectives
Scott Matthies, managing director of Saskatchewan’s India trade office at the High Commission of Canada in Delhi, expressed optimism about zero tariffs but acknowledged India’s need to protect its farmers. “Obviously, we’d love to see that be zero tariff, but the Indian government needs to do what it needs to do to protect its farmers,” he said.
Regina-based AGT Food and Ingredients Inc., which sells lentils and peas to India and is building a new pasta production facility, remains hopeful. CEO Murad Al-Katib cited Australia’s recent successful negotiations as a positive sign. “I still don’t have any reason to believe that we won’t get a deal. Other deals that have been signed, like Australia, did get through some of those issues,” Al-Katib said. He noted that India has been a major pillar for the company’s global growth strategy, even during periods of political tension between the two countries.
The trade deal is expected to be finalized by the end of the year, potentially opening the Indian market to Saskatchewan’s pulse exports and boosting the province’s agricultural sector.
