Canadian Lentils See Good Business Due to Manageable Import Duty in India

10-Apr-2025 01:41 PM

Regina: Despite India reimposing an 11% import duty on lentils after the end of the duty-free period, Canadian exporters remain optimistic.

The current rate is significantly lower than the previous 33%, making exports to India still viable. As a result, business in red lentils has picked up in Western Canada, with prices rising to 33–35 cents per pound.

Australia, Canada's main competitor, is facing low stock levels due to reduced production and weak demand, giving Canada an edge in the export market.

Lentil sowing has begun in Canada and is expected to accelerate soon, while Australia will start next month. Meanwhile, India has already started receiving new crop supplies, and Turkey will begin harvesting in May-June.

Though advance contracts for Canada’s upcoming crop are underway, buyer interest is limited.

The price for new red lentils is hovering around 28 cents per pound, but buyers anticipate further declines by August–September, when new stock arrives. The uncertainty created by US tariff policy is also causing caution among bulk buyers.

In the green lentils segment, the market is under slight pressure due to a likely increase in sowing area in Canada.

Thick green lentils are priced at 50–51 cents per pound, with new crop contracts at 40–42 cents, while small green lentils are trading at 45 cents (current) and 35–37 cents (new crop).

The overall outlook remains cautious amid global market volatility.