Nykole King
Regina Leader-Post
Saskatchewan farmers are waiting to see whether key agricultural exports to India will continue to face a 30 per cent tariff, or if the duties will disappear under an upcoming free trade deal between Canada and the South Asian economy.
India’s High Commissioner to Canada Dinesh Patnaik says both countries are trying to reach a compromise in which Canada can continue to export peas and lentils, while balancing support for India’s own farmers.
“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 last week at an annual summit run by the Canada-India Business Council.
India slapped a 30 per cent tariff on Canadian yellow peas in November and a 10 per cent tariff on its lentils in March 2025 to improve the value of its own crops.
Now that both countries are negotiating a trade agreement, Saskatchewan’s farmers and agri-foods sector hope the southeast Asian country will agree to reopen free market access to its pulse exports.
Canada and India had a third meeting in Ottawa in May, to iron out the details of an agreement struck by Prime Minister Mark Carney and India in November to diversify Canada’s economy at a time of trade uncertainty with the U.S.
The trade barriers could be dropped completely if the two sides reach a consensus. The deal, which covers various areas of trade, is expected to be finalized by the end of the year.
“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,” said Scott Matthies, managing director of Saskatchewan’s India trade office at the High Commission of Canada in Delhi.
The delegation, however, has so far prioritized areas in which they already agree, says Patnaik.
“We may not get an agreement on five per cent of the things,” Patnaik said to media.
“We’ll have to find out imaginative, different ways to do it. (If) you can’t do it, we’ll drop it on the side and we’ll go ahead with the 95 per cent.”
The Indian diplomat pointed out that there are agricultural “sensitivities” for both sides.
Canada, for example, has protections for its dairy industry, he said.
Regina-based AGT Food and Ingredients Inc. sells both lentils and peas into the India market, with a new pasta production facility under construction.
Chief executive Murad Al-Katib was at the summit in Regina, where he was still feeling optimistic, citing Australia’s recent assurances in its negotiations.
“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,” said Al-Katib.
India has been a “major pillar” for the company’s global growth strategy, even during difficult years, when Canada pulled away from its partnership with India due to security and political concerns.
“We stuck it out. We were there. We never diminished our focus on India… so to see everybody coming back again — we were going against headwinds, now we’re riding the tail winds,” said Al-Katib.
Saskatchewan Premier Scott Moe wants to see free trade of pulses with India. If the two sides cannot find common ground, then it’s still necessary to work through it later.
“Whether they’re in the actual trade deal or not, it would be preferable if they are; however, it’s not a showstopper,” Moe said.
Canada is the second-biggest supplier of pulses to India behind Myanmar, with much of it grown in Saskatchewan.
Regardless of any protectionist policies, Saskatchewan expects that pea and lentil demand will continue to improve incrementally.
“The major importers in India that are drawing pulses from Saskatchewan are consistently committed to bringing pulses into India, regardless of what the tariff situation looks like,” says Matthies.
