Lentil market status
05-Dec-2024 11:25 AM
Lentil market status
The lentil market situation in India, Canada, and Australia shows a mix of domestic and international factors influencing prices and availability. Here's a breakdown:
India:
Domestic Prices: Lentil prices in Madhya Pradesh range from Rs. 5500-6000 per quintal, while in Uttar Pradesh, they are between Rs. 5800-6000 per quintal.
Imported Lentils: Imported lentils like Canadian and Australian varieties are priced at ₹6050 per quintal (Canada), ₹6150 per quintal (Australian Jumbo), and ₹6100 per quintal (Australian Nipper). These prices are similar to domestic prices.
Availability: The availability of both domestic and imported lentils is stable, with good stocks held by the government, private traders, and importers.
Imports: India imported 16 lakh tonnes of lentils last year, ensuring good availability. This year, imports are expected to be lower at 4.97 lakh tonnes between April and October, compared to 9.45 lakh tonnes during the same period last year.
Sowing and Production: Lentil sowing in India has begun, but it is expected to be weaker compared to last year, as farmers may prioritize other crops like gram and wheat.
Price Outlook: Short-term price movements are expected to be range-bound, but sowing data will likely influence the market. With good domestic and international availability, prices are unlikely to rise sharply in the short term.
Canada:
Price Stability: In December, red lentil prices are stable at $0.33-$0.34 per pound for old crops, with new crop demand weaker at around $0.30 per pound.
Green Lentils: There has been a softening in the demand for green lentils. Old small green lentils are priced at $0.53-$0.54 per pound, while large green lentils are priced at $0.58-$0.60 per pound. New small green lentils are trading at $0.43-$0.45 per pound, and large green lentils at $0.45 per pound.
Production Forecast: Preliminary data suggests that green lentil production will increase in Canada for the 2025/26 crop year.
Australia:
Production Decline: Australia's ABARES has revised its lentil production estimate downward to 11 lakh tonnes, a significant reduction from the previous forecast of 17 lakh tonnes.
Exports: In the period from November 2023 to October 2024, Australia exported 14.11 lakh tonnes of lentils, which is a decrease compared to the 18 lakh tonnes exported in the previous year. A significant drop in exports occurred in October.
Market Dynamics:
International Competition: Australia and Canada are competing for lentil exports to India, which may put pressure on international prices.
Short-Term Outlook: Prices are expected to remain stable or range-bound due to good availability in both domestic and international markets. However, any changes in sowing data or unexpected weather patterns could influence prices moving forward.