Ukrainian peas producers have lost an important Indian market – prices will fall

Ukrainian peas have a high export potential, but prices for the product will fall. The Government of India has banned the import of yellow peas, which will lead to an increase in supply and a collapse in prices on the world market, writes Agro-Center.

India is introducing a ban on imports of yellow peas for a period of 3 months. The ban will take effect on April 1 and last till June 30, 2018:

“In 2016/17, Ukraine produced more than 1 million tons of peas. It was forecasted that Indian demand will cover more than 500 thousand tons. Measures introduced by India will cause significant pressure on prices, as the supply will increase,” said the head of the department of analytics and data at MarcoPolo Commodities Olena Neroba.

According to her, it is important for Ukraine to keep the markets of Pakistan (about 16% of Ukrainian exports), as well as the markets of Turkey and the EU.

According to the Indian Pea Producers Association, key suppliers of peas to India were Canada (78.80%), the United States (10.70%), Australia (4.05%), Russia (3.78%) and Ukraine (2.78%). Ukrainian peas, along with Russian peas, were one of the cheapest for Indian buyers.