Key Takeaways
- India is actively considering guaranteed long-term pulse purchases from Canada, a move signaling a push for greater stability in agricultural trade between the two nations.
- The revelation came from High Commissioner Dinesh Patnaik during a visit to Saskatchewan, underscoring the agricultural heartland's importance in bilateral relations.
- Under Prime Minister Mark Carney, Canada, alongside India, has formally agreed to restart negotiations for a full Comprehensive Economic Partnership Agreement (CEPA), aiming to significantly boost bilateral trade.
- This renewed diplomatic and commercial engagement follows a period of strained relations and seeks to achieve a bilateral trade target of $50-70 billion by 2030.
In a significant development for India-Canada trade relations, India is exploring the possibility of guaranteed long-term pulse purchases from Canada. This initiative was revealed by High Commissioner Dinesh Patnaik during his visit to Saskatchewan, Canada's key pulse-producing province. The move highlights India's strategic interest in securing stable agricultural imports and Canada's role as a major global supplier of pulses.
The announcement comes as both nations, under the leadership of Prime Minister Mark Carney in Canada and Prime Minister Narendra Modi in India, have committed to restarting negotiations for a comprehensive trade deal. This renewed push for a Comprehensive Economic Partnership Agreement (CEPA) marks a substantial thaw in bilateral ties, which had previously faced diplomatic challenges.
Diplomatic Reset and Trade Ambitions
The decision to resume trade talks follows high-level meetings between Prime Minister Modi and Prime Minister Carney on the sidelines of the G7 summit in June and the G20 summit in November 2025. These discussions laid the groundwork for a diplomatic and commercial reset, with both leaders expressing a commitment to deepening cooperation across various sectors, including trade, investment, technology, energy, and defense.
The appointment of Dinesh Patnaik as India's High Commissioner to Canada in August 2025 was a key step in normalizing diplomatic relations. Patnaik, a seasoned diplomat, is tasked with navigating the complex bilateral landscape and fostering stronger ties.
Mark Carney's Leadership and Economic Vision
Mark Carney, who assumed the role of Canada's Prime Minister in March 2025 after winning the Liberal Party leadership, has been instrumental in revitalizing the relationship with India. His administration is focused on leveraging Canada's economic strengths, including its agricultural sector, to forge new international partnerships and diversify trade. Carney's background as a former Governor of the Bank of Canada and the Bank of England positions him as a leader with a strong understanding of global economic dynamics.
The renewed engagement aims to significantly boost bilateral trade in goods and services, with targets ranging from $50 billion to $70 billion by 2030. This ambitious goal underscores the potential for growth in various sectors, including critical minerals, clean energy, and digital technology, in addition to agriculture.
Pulse Trade Stability and Market Impact
Pulses represent a critical component of India-Canada trade, with Canada being a major exporter of lentils and peas to India. In 2024, pulses were Canada's largest export to India, valued at $1.4 billion. However, the trade has faced volatility, including India's recent imposition of a 30% tariff on yellow peas in late October 2025, which impacted Canadian exports.
The proposed long-term purchase agreements are expected to provide much-needed predictability and stability for Canadian pulse growers and exporters, mitigating the impact of sudden policy changes. Pulse Canada, the national association representing the Canadian pulse sector, has consistently advocated for a comprehensive free trade agreement that ensures stable market access and mutual benefits for both countries' pulse value chains. This renewed dialogue offers an opportunity to address tariff reductions and establish clearer import policies, fostering long-term growth and food security for India.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.