Increase in pulse tariffs won't affect P.E.I. operation, exporter says

A pulse and grain exporter with an operation in P.E.I. isn't concerned about increases in tariffs on chickpeas, lentils and peas entering India.

Chickpea tariffs rose from 44 to 66 per cent, lentils from zero to 33 per cent and peas from zero to 50 per cent.

Chris Chivilo, CEO of Alberta-based W.A. Grain & Pulse Solutions, says the company has been preparing for India to raise its import taxes.

"India has had now, three successive good crops and had massive imports just over a year ago and truth be known they just don't need to have a lot of imports right now,"he said.

"They're in a surplus with certain pulses."

Chivilosaid India has raised tariffs not only to discourage imports but to drive the price of peas, lentils and chickpeas up in the country to benefit farmers there.

He said the the move won't affect operations at its facility in Slemon Park, P.E.I. Though exports to India made up 50 per cent of the company's pea exports, chickpeas and lentils were less significant.

Exports of chickpeas to India made up 20-25 per cent of the company total andlentils 10 per cent,and the company focuses more on the Middle East when it comes to exporting those products.

Diversifying

Chivilosaid the company has been working to increase its footprint in Canada and break into new markets.

"Wherever we can take the focus off of exports versus domestic we are going to go domestic so we reduce our reliance on exports," he said.

"What we have done as a company overall is diversify where we're marketing to. We've put a huge focus on marketing domestically and to human food uses as well as pet food ingredients."

He said in addition to pet food, the company is also branching into organics and other new products.

The company is moving ahead with plans to expand operations on P.E.I., aimingto get over 4,800 hectares worth of production from Island farmers growing peas, chickpeas and lentils as rotational crops.

Chickpeas, specifically, are a productChivilois confident in and isn't worried about the effect of tariffs.

"They're easily marketable in North America and quite honestly, the Indian tariffs right now have very little impact on the chickpea market in Canada, mainly because we have next to nothing left for export."

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