The removal of import duty by India contributed to the growth of prices for Ukrainian peas – analysts

During the last month, the prices of peas in Ukraine have increased significantly due to the removal of import duties by India. According to forecasts, the area sown under this culture will be increased.

This was discussed on March 26 during the analytical briefing of the PUSK cooperative, created within the Ukrainian Agi Council, writes SuperAgronom.com.

“The pricing of Ukrainian peas is interesting. A key factor driving the market is demand from India. At the beginning of February 2024, a ton of yellow peas conventionally cost UAH 10,000, as of March 25, purchase prices increased to UAH 13,500 per ton. Of course, there was an influence of exchange rate fluctuations, but this factor is not decisive. The main factor is India’s removal of customs duties on the import of peas by April 30, 2024,” said the analytical department of PUSK.

India is one of the largest consumers of niche crops. Analysts note that pea prices will continue to rise for a few more weeks. If India closes the possibility of duty-free import of pulses, the price reduction may occur already in the second half of April. Currently, Ukrainian producers are actively contracting supplies of yellow peas to India.

As of March 22, 53.1 thousand hectares of peas have already been sown in Ukraine. According to the forecasts of the Ministry of Agrarian Policy, the sown area of peas in 2024 will be about 160 thousand hectares, which is 10 thousand hectares more than last year.

Tags: Ukraine, prices, import duties, peas, India