Lentil Prices: Shrinking Supplies Push Prices Higher

The lentil market is seeing steady price increases as Indian domestic and global supplies tighten. Stocks in key producer regions across India are dwindling, while import costs from Canada and Australia have risen by USD 0,018–0,024 per kg. These pressures have already pushed domestic prices up by USD 0,030–0,036 per kg, keeping traders and buyers on edge.

Sowing is nearly complete in Madhya Pradesh, Rajasthan, and Uttar Pradesh, covering about 90% of the targeted area. Late sowing is ongoing but faces risks from warm winds during crop ripening, which could impact yields. In previous seasons, regions like Mungavali, Ganj Basoda, and Sagar saw consistent output. This year, however, depleted old stocks are adding to the strain.

Domestic and Imported Supplies Under Pressure

Traditional supply hubs like Kota, Bundi, and Bihar's Mohanpur region are facing reduced availability, and importers are grappling with higher costs. Canadian lentils arriving in January at Mundra Port are priced at USD 0,708 per kg, with landed costs climbing to USD 0,756 per kg. Current market rates hover around USD 0,738 per kg, while premium lentils in Bilti markets are trading at USD 0,800 per kg, with predictions suggesting prices could cross USD 0,816 per kg in the coming weeks.

Balancing Demand and Limited Production

India’s annual lentil consumption stands at 2.8 million tonnes, but last season’s production fell short at 1.6 million tonnes, creating a significant supply gap. Historically, imports have bridged this shortfall, but global supplies are also under strain. Most stocks from the September-October harvests in Canada and Australia have already been sold, leaving little room for adjustments.

Tight Supplies Keep Prices Strong

With the new crop still two months away, lentil prices are likely to remain firm or climb further. Traders anticipate continued upward momentum, driven by constrained domestic supplies and costly imports. While this situation offers opportunities for farmers and traders, consumers may feel the pinch of rising prices in the weeks ahead.





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