Fresh Deals Spark New Optimism in Lentil Prices

The lentil market is gearing up for a potential price hike as supply in the mandis (markets) slows down. For two months, demand for masoor dal and malka has cooled, especially in Eastern India. Political instability in Bangladesh also reduced the flow of goods from border markets. Now, traders have started making new deals, which could fuel a rise in market prices. Even though fewer lentil containers are arriving from Canada, lentil prices dropped by USD 0,07 per kg over the last month and a half due to weakened demand.

Unrest in Bangladesh Shakes Up the Lentil Trade

Around 22-23% of the lentil trade from Bengal to Bangladesh faced cancellations due to recent unrest. This situation left goods in warehouses and pulse mills waiting to be sold. Prices for Masoor Bilti dropped to USD 0,79/0,79 per kg, while Canadian Masoor prices stand at USD 0,74/0,74 per kg, depending on quality. Importers at Mundra Port reduced their prices to move their stock, but now traders are striking fresh deals at higher rates. Goods sold earlier, mostly from big companies, will not enter the market anytime soon, which should keep the market bullish.

Delayed Domestic Crop

The domestic lentil crop will not arrive for another 5 months since sowing in Rajasthan, Madhya Pradesh, and Uttar Pradesh usually happens in October. This year, late rains are likely to delay the sowing season. Meanwhile, in Canada, the lentil crop has already arrived, but bad weather led to reduced productivity per hectare, causing lower production overall. As a result, new deals are coming in at higher prices.

Lentil Prices on the Rise as Supply Tightens

Lentil prices at major ports, including Mundra, are on the rise. Larger companies are avoiding big deals, making it harder to find cheaper lentils. While Bangladesh still feels the effects of political unrest, the chances of prices falling remain slim. Domestic production is around 1.6 million tonnes, while domestic consumption hits 2.7 million tonnes—with some of this supply going to neighboring countries.

Lentil Shortages Hit Key Indian Markets

In regions of Madhya Pradesh,  like Mungaoli, Ganj Vasoda, Sagar, Bhopal and Binaganj markets lentil arrivals have slowed, leaving mandis with low stock. Traders sold off the old stock when the new crop arrived. At Mundra Port, only a limited amount of old stock remains, and containers are quickly shipping out to Delhi, Kanpur, and Pune. Based on these trends, lentil prices in Bilti could rise to USD 0,84 per kg soon.

Conclusion: Lentil Prices Poised to Rise in a Tightening Market

With domestic crop delays, lower imports, and rising demand, the lentil market seems primed for a price hike. As factors like unrest in Bangladesh and reduced Canadian production continue to affect supply, it’s clear that lentil prices will face upward pressure in the coming months.





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