Canadian lentil exporters will benefit from the possibility of reduced production in Australia
11-Oct-2024 01:27 PM
Mumbai. Earlier, Australia was estimated to produce 16-17 lakh tonnes of lentils in the 2024-25 marketing season, but in view of the heavy damage caused to the crop due to the extremely adverse weather of August-September, now the production there is expected to decrease to around 10 lakh tonnes.
On the other hand, there has been a good increase in the production of this important pulse in Canada, due to which its exporters will not have to face much tough challenge in the global export market.
But both Canada and Australia may have to face tough competition from the countries of the Black Sea region and especially Kazakhstan and Russia.
According to rough estimates, this time 2.50 lakh tonnes of lentils can be exported from Kazakhstan and one lakh tonnes from Russia. Lentils of these countries are available at relatively cheaper prices.
Lentil exporters of Canada and Australia are focused on the Indian market, but looking at the current situation, it seems that imports in India may decrease significantly.
According to rough estimates, the government agency NAFED has a huge stock of about 8 lakh tonnes of lentils, which can be released in the domestic market at the right time.
The lentil sowing season has officially begun, while its price remains stable in a certain range. The minimum support price (MSP) for lentils and other Rabi crops is going to be announced soon.
There is a possibility of a 6 percent increase in the MSP of lentils. If the import of lentils in India falls to less than 8 lakh tonnes, then the exporters of Australia and Canada will have to make a strong effort to increase shipments to other markets, which may increase competition among them.
It will be interesting to see what kind of strategy is made by the producers and exporters of Canada and Australia on the front of lentil prices with the challenge of the Black Sea region and the possibility of weak imports in India.