Indian Lentil Prices Ease Under Import Pressure but Duty Sets a Floor

Indian lentil prices are drifting lower under steady import pressure, but a 10% duty, tight domestic crop conditions and seasonal consumption are preventing a sharp correction. With government buffer stocks ample and a large Canadian vessel due late April, buyers face a buyer’s market in the short term, while global suppliers should not expect aggressive new Indian buying.

India’s domestic lentil complex is in a controlled softening phase. Spot values in key wholesale hubs such as Delhi and Katni have fallen for a third straight session, mirroring the uninterrupted inflow of Canadian and Australian cargoes into Indian ports. At the same time, smaller-than-expected domestic arrivals and firm consumption in eastern India are cushioning the downside. For European and other international traders, India’s comfortable stock situation and impending Canadian arrivals signal limited near‑term upside for export values.

📈 Prices & Spreads

Delhi domestic lentils eased by about USD 1.18 per 100 kg, settling around USD 78.82–79.12 per quintal, while Katni (Madhya Pradesh) slipped to roughly USD 78.24 per quintal. Imported containerised Canadian lentils are quoted lower, at around USD 73.24–73.53 per quintal at Mundra and USD 70.59–70.88 per quintal at Hazira, while Australian lentils stand near USD 72.65–73.24 per quintal. This keeps a clear discount for import origins versus domestic product, even after applying the 10% duty that underpins a structural price floor.

On the global side, indicative FOB offers converted into EUR show broadly stable to slightly softer levels over recent weeks. Chinese small green lentils (FOB Beijing) are around EUR 1.14–1.23/kg, modestly below early‑March levels. Canadian green lentils (Laird/Eston) sit near EUR 1.65–1.75/kg FOB Ottawa, while Canadian red football lentils trade around EUR 2.58/kg. These levels are broadly consistent with the mild pressure observed in India, but the tariff‑adjusted import parity into India still supports a premium for domestic origin.

Product	Origin	Location / Term	Latest Price (EUR/kg)	1-week Trend
Lentils, small green (organic)	China	FOB Beijing	1.23	⬇ (from 1.25)
Lentils, small green	China	FOB Beijing	1.14	⬇ (from 1.16)
Lentils, Eston green	Canada	FOB Ottawa	1.65	➡
Lentils, Laird green	Canada	FOB Ottawa	1.75	➡
Lentils, red football	Canada	FOB Ottawa	2.58	➡

🌍 Supply & Demand Balance

The dominant bearish driver is the uninterrupted arrival of imported lentils into India. Canadian and Australian shipments continue to land in volume, with port stocks in the central government buffer already around 400,000 tonnes. In addition, a Canadian vessel carrying more than 43,000 tonnes of pulses, including 11,000 tonnes of lentils, is scheduled to reach Mundra around 19 April 2026, reinforcing the import pipeline and keeping nearby supply more than adequate.

On the domestic side, production is running below earlier expectations due to unfavourable weather in key growing regions. Fresh crop arrivals from producer markets in Madhya Pradesh and Uttar Pradesh have been slower and lighter than anticipated, indicating lower‑than‑normal output. Dal mills are restricting purchases to immediate needs, avoiding aggressive restocking in the face of continuous imports. At the same time, seasonal demand remains supportive: high‑consumption states such as Bihar, West Bengal and Assam are in a peak lentil‑consumption phase, providing a steady offtake that partly offsets the downward price pressure from imports.

📊 Fundamentals & Policy Factors

India’s 10% import duty on lentils is a key structural support, effectively setting a floor via import parity. This has limited the scope of the current correction despite heavy seaborne flows and ample government buffer stocks. With India being one of the world’s largest lentil importers, this policy framework also stabilises global price expectations by preventing a collapse in Indian values that could otherwise transmit abroad.

Given the combination of comfortable state buffer holdings, ongoing Canadian and Australian arrivals, and only moderate domestic supply tightness, the market remains balanced but skewed slightly to the bearish side for the next two to four weeks. A sharp downside move is unlikely without a policy shift, while a strong price rebound would require a further negative surprise in domestic arrivals or a disruption in import flows. For now, the government’s stabilisation role and the duty regime are keeping volatility contained, even as spot prices edge lower.

📆 Short-Term Outlook & Trading Implications

Over the coming 2–4 weeks, lentil prices in India are expected to stay under mild downward pressure as the incoming Canadian vessel adds to already elevated port inventories. The critical support area remains the landed import parity level adjusted for the 10% duty. Unless domestic arrivals drop sharply below current already‑subdued expectations, a pronounced recovery in Indian spot prices appears unlikely in the near term.

• Importers / Domestic buyers (India): Consider staggered procurement rather than front‑loading, using current softening as an opportunity while respecting the duty‑linked floor. Avoid chasing rallies until domestic arrivals or policy signals change materially.
• Exporters (Canada, Australia, China): Do not rely on significant short‑term volume expansion into India; pricing strategies should assume a competitive, buyer‑driven Indian market and moderate nearby demand for fresh contracts.
• European traders: With India well covered via buffer stocks and incoming Canadian supply, near‑term competition from Indian demand on the global market will be muted. Use any temporary firmness in freight or FX to lock in favourable origin spreads rather than betting on an Indian‑led price spike.

📍 3-Day Directional Price Indication (EUR)

• India, domestic spot (Delhi/Katni, parity in EUR): Slightly softer bias, but broadly range‑bound above tariff‑adjusted import parity.
• FOB China, small green lentils (Beijing): Stable to marginally weaker around EUR 1.10–1.25/kg amid subdued external pull.
• FOB Canada, green and red lentils (Ottawa): Largely steady in the short term, tracking Indian softness but supported by freight and currency factors.