News Capsule: Canadian Lentil Exports Remain Strong, but Concerns Rise Over Possible Tariff Hike in India
05-Feb-2026 08:37 AM
News Capsule: Canadian Lentil Exports Remain Strong, but Concerns Rise Over Possible Tariff Hike in India
★ Despite a 10% Indian import tariff, Canadian lentil exports have continued smoothly so far in 2025/26. However, heavy arrivals of red lentils from Canada and Australia into India have raised concerns that India may increase import duties.
★ Red lentil prices in India had remained range-bound over the past three years, but have fallen sharply since mid-September and are now at their lowest level since 2019/20.
★ If import duties on lentils are raised, the impact will largely depend on the tariff level. In the case of peas, a 30% tariff led to higher prices in India, but imports continued and Canadian prices were largely unaffected. If a similar 30% tariff is imposed on lentils, Canadian supplies to India may continue with only limited impact on prices.
★ Exports to India remain crucial for the 2025/26 outlook and beyond. Canadian lentil supplies in 2025/26 are estimated at over 4 million tonnes, around 1.25 million tonnes higher than last year. Even with strong exports, ending stocks are expected to remain large, especially for green lentils, where supply pressure is particularly heavy.
★ The Indian market is especially important for green lentils, as they can be used as a substitute for tur (pigeon pea). In recent months, tur prices in India have risen and are now trading above green lentil prices, which could encourage higher imports of green lentils.
★ While this is a positive signal for the market, it will still take time to resolve the problem of excess supplies.
★ Overall, pulse markets remain dynamic and somewhat unpredictable, particularly when governments intervene. Farmers will need to keep their marketing strategies flexible to adjust quickly to policy changes, while the role of grower organisations such as SPG in market development and advocacy continues to grow in importance.
Important Disclaimer:
This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.