India’s Masoor Lentils: Tight Domestic Supply Meets Heavy Imports

Desi masoor lentil prices in India are edging higher within a narrow band as lower domestic production collides with sharply higher imports, keeping the market supported but capping any strong rally. Quality domestic lots are securing a visible premium over imported material. Domestic lentil supply has tightened this season, with production estimates below last year and arrivals from producing mandis limited. At the same time, India has boosted masoor imports by more than 50% year-on-year between January and June 2026, mainly from Canada and Australia, ensuring comfortable overall availability. Wholesale prices in key centres such as Katni, Indore and Delhi have firmed recently, while port markets report steady availability of imported masoor. Against this backdrop, dal mills are gradually increasing buying at lower levels in anticipation of stronger festive-season demand.

Prices

Desi masoor prices have strengthened across several Indian markets, supported by lower production and thin arrivals. In Delhi, Madhya Pradesh-origin masoor is quoted around INR 6,800–6,850 per quintal, while Rajasthan-origin lots trade near INR 6,325–6,350 per quintal, with premiums reflecting better quality and moisture parameters. Recent mandi data also show lentil whole prices in Katni moving above INR 6,100 per quintal, confirming the firmer undertone.

Internationally, Canadian FOB values for bulk lentils remain broadly steady, with old-crop red lentils around CAD 0.22–0.23/lb and large greens near CAD 0.22–0.24/lb, indicating no sharp external price shock in the very short term. Chinese small green lentils (FOB Beijing) show a modest softening compared with early August, suggesting some easing in non-Indian origins.

Supply & Demand

India’s domestic masoor production is estimated below last year, tightening raw material availability in major producing states and limiting mandi arrivals. This structural shortfall is partly offset by a steep 51% increase in imports during January–June 2026 to about 0.96 million tonnes, ensuring that national stocks remain adequate despite local tightness.

Port markets report sufficient imported masoor from Canada and Australia to cover near-term consumption, but landed cost remains sensitive to the rupee, freight rates and changing international offers. Dal mills are currently buying on a need-based basis and scaling up procurement when prices dip, as processed masoor demand is uneven across consuming centres. Festive-season demand in the coming weeks is expected to gradually lift off-take, especially for better-quality desi supplies.

Fundamentals & Weather

The present balance between lower domestic production and higher imports has kept Indian masoor prices in a relatively narrow corridor. Limited arrivals from producing mandis underpin nearby values, while ample overseas supply at ports restricts any sharp upside. Quality differentiation is notable: clean, well-graded domestic masoor continues to command a premium over average and imported lots, especially in Delhi and central India markets.

Weather conditions in lentil-growing areas of Madhya Pradesh and Rajasthan remain an important watchpoint. Recent monsoon patterns have been broadly adequate, though parts of Rajasthan show modest rainfall deficits; any late-season weather disruptions could further constrain the next crop’s yield potential. For now, however, the key fundamental driver remains the interplay of import pace with domestic stockholding and festival-led demand.

Short-Term Outlook & Trading Ideas

• Price direction (India): Masoor prices are biased mildly upward but are likely to remain range-bound in the near term, as tight domestic supply is counterbalanced by comfortable import availability.
• For importers: Consider locking in part of requirements at current international prices, as CAD-denominated values are relatively stable and any rupee weakness or freight increase could lift landed costs before the main festive demand window.
• For dal mills: Maintain staggered, need-based buying, favouring quality domestic lots where premiums remain manageable; avoid aggressive forward coverage until clearer signals emerge on late-monsoon performance and further import arrivals.
• For producers: Farmers holding good-quality masoor may benefit from phased sales, as quality spreads are likely to persist and festive demand could modestly improve near-term realizations.

3-Day Price Indication (Directional, EUR-based)

• India, desi masoor (Delhi equivalent, EUR/t): Stable to slightly firmer; narrow band movement expected as mandis see limited arrivals but imports remain active.
• Canada FOB (red and green lentils, EUR/t): Largely stable; no major weather or demand shock anticipated over the next few days.
• China FOB small green lentils (EUR/t): Slightly soft tone after recent declines, but downside appears limited near current levels.