A looming crisis in the red lentils market could spell trouble for Saskatchewan producers. India has refused to extend Canada鈥檚 exemption for pest treatment for peas and red lentils.
The exemption has been in place for over a decade but expires on Friday, March 31, 2017. According to the agreement, Canadian lentil shipments are fumigated after arrival in India because the methyl bromide fumigation is not effective in cold temperatures when shipments leave Canada during the winter months.
The crop affected right now is the 2016 red lentil crop. The Saskatchewan Agriculture Ministry has not heard of shipments being refused, but some have been delayed because shippers are unwilling to take the risk. 鈥淚t is holding up deliveries right now.鈥�
Also at issue is the 2017 crop year. Producers are now in the process of deciding on what to plant for the spring, Stewart noted. 鈥淚t is now when producers are finalizing their seeding intentions.鈥� If the issue isn鈥檛 resolved soon, then producers may consider growing other crops causing a shortfall on the market and a loss of markets.
Canada recently resolved a trade dispute with China over the amount of dockage in canola crops. Saskatchewan鈥檚 top-ten destinations for exports in 2016 were the US with $3.5 billion, China with $2.4 billion, India with $1.1 billion, Japan with $970 million, Mexico with $623 million, Pakistan with $548 million, United Arab Emirates with $466 million, Turkey with $460 million, Bangladesh with $410 million and Algeria with $355 million.
In total, 13 countries were the recipients of more than $200 million in Saskatchewan agri-food exports, making Saskatchewan agriculture the most diversified market of any industry sector in the Canadian economy.
