Lentil Market Drop as Supply Increases

The lentil market is under pressure as cheaper Canadian imports and government stocks push prices down. Recent hot weather across India and the arrival of new crops in Madhya Pradesh have added to the uncertainty, keeping the market cautious.

Lower Prices and Slow Demand

Lentil prices have dropped in recent weeks due to increased supply. Masoor lentils, which were selling for USD 0,75 per kg, are now priced at USD 0,73 per kg. New arrivals are being quoted even lower at USD 0,72 per kg.

Bilti lentil prices have also fallen, from USD 0,82 per kg to USD 0,81 per kg. Even at these lower prices, buyer interest remains weak.

The arrival of Canadian lentils at Mundra Port, along with government tenders, has created an oversupply. Traders are being advised to sell their stocks now rather than wait for a price rebound.

Hot Weather Raises Concerns for Crops

A heatwave in recent days has raised concerns about India’s standing lentil crop. While warm and dry weather is good for crop development, extended high temperatures could harm the yield.

This year’s production is expected to reach 1.7–1.8 million tonnes, falling short of the country’s annual consumption of 2.8 million tonnes. This gap means India will need to rely on imports to meet demand.

Crop Arrivals on the Way

• Madhya Pradesh: New lentils will arrive in early February.
• Rajasthan: Harvesting will start in about 20 days.
• Uttar Pradesh: The crop will mature in the next 45 days.
• Bihar: Lentils will arrive by early March.

Advice for Traders

With plenty of Canadian lentils available and domestic supplies on the way, traders should consider selling their stocks at current prices. Prices may see small temporary increases, especially if the weather turns unfavorable, but oversupply and weak demand make a cautious approach wiser.

If the weather worsens, prices could rise by USD 1,21–1,82 per tonne, but waiting for this increase carries risks given the current market conditions.

Final Thoughts

The lentil market is in a challenging phase, with falling prices and plenty of supply. Weather and imports will play a big role in shaping the weeks ahead. Traders and farmers should watch these factors closely to make the best decisions.





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