India has extended its window for duty-free imports of yellow peas, with vessels now allowed to be loaded until the end of June. But a lack of available product from major exporters cold mitigate spot market impact, according to trading firms.
Vessels with a bill of lading date of before 30 June can import peas to India without incurring duties, according to a notice released by the country's finance ministry today.
This is the second extension to India's yellow peas import window. Duties initially were suspended in December for shipments arriving before 1 April. In February, India extended the deadline for vessels with a bill of lading issued before 30 April.
But old-crop prices may be little swayed by the announcement, according to market participants. Prices for North American and Black Sea yellow peas increased sharply on demand following the initial duty suspension in December, with Canada alone shipping nearly 636,000t from December-February, latest customs data show.
Canadian peas from the 2023-24 crop were all but sold by April, according to market participants, with little volume remaining to be shipped from Vancouver in the first extension window. Spot prices for yellow peas fob Vancouver therefore are unlikely to draw support from the latest extension.
And in the US, some old crop remains, but unfavourable logistics mean the country is unlikely to catch India's bulk demand. Supply is also limited in the Black Sea, according to market participants.
But new crop offers are likely to be supported by today's announcement, with trading companies considering the possibility that India's demand will persist into the new season.
