Modi wins Indian election, triggering speculation on the future of pulse import tariffs

In somewhat of a landslide victory, Narendra Modi has secured another five year term as the Prime Minister of India.

As one of the milestones influencing the country’s strategy on pulse crop import tariffs, the federal election is big news for the international agriculture community. Now that it’s over, should Canadian pulse growers expect a lifting of the import tariffs?

“Indian pulse prices are just starting to move higher as stockpiles are shrinking,” says Chuck Penner of LeftField Commodities. “That might be the trigger that allows them to reduce import tariffs, but it’s just coincidence that it’s at the same time as the election.”

“Canada’s relationship with India has lived through a rocky path since Prime Minister Trudeau’s trip to India back in early 2018, but trade with the growing economic nation has never been very easy,” says RealAgriculture’s Shaun Haney. “Pulse growers in Western Canada will take any reason for the tariffs and fumigation issues to be relieved.”

With any election result comes the fulfillment of promises to constituents, but Penner says, “Mr. Modi may feel a little less pressure to keep the farm contingency happy, but that’s a secondary consideration [on trade policy].”

Leave a Reply

 

This site uses Akismet to reduce spam. Learn how your comment data is processed.