Lentils: Indian Masoor Under Pressure as Imports Surge

India’s masoor lentil market is trading with a soft bias as large imported supplies and restrained mill buying cap any seasonal upturn. Elevated port inventories and strong arrivals from Canada and Australia are keeping domestic prices under pressure, despite improving consumption in eastern states. A well-supplied Indian market is the central feature of today’s lentil complex. Masoor imports in the first five months of India’s 2026/27 financial year have surged to around 640,000 tonnes, roughly 200% above last year’s pace, driven mainly by Canada and Australia. High port stocks and ongoing shipments allow dal mills to buy only for immediate needs, which limits support from seasonal demand in Bihar, West Bengal and Assam. Globally, current export quotations indicate largely steady prices with only modest recent moves, reinforcing the picture of a comfortable near-term balance.

Prices

Domestic masoor prices in India have weakened in Delhi while imported quotations at key ports are reported broadly stable, reflecting ample availability and cautious buying from dal mills. Seasonal consumption in major eastern consuming states is providing some support, but not enough to trigger a sustained rally under current supply conditions.

Export offers suggest a mostly steady international backdrop. Recent indications show Canadian lentils FOB Ottawa at EUR 2.11 for red football, EUR 1.22 for Laird green, and EUR 1.18 for Eston green. Chinese small green lentils FOB Beijing are quoted at EUR 0.88 for conventional and EUR 0.93 for organic. These levels point to only minor adjustments in recent weeks, consistent with the soft yet not collapsing tone in India’s wholesale market.

Supply & Demand

India’s masoor balance is currently dominated by imports. Volumes in the first five months of 2026/27 are estimated around 640,000 tonnes, roughly triple last year’s level, with Canada and Australia as primary suppliers. Port inventories are described as high, and additional vessels are still arriving, ensuring comfortable near-term availability.

On the demand side, seasonal consumption is strengthening in Bihar, West Bengal and Assam as winter approaches, but dal mills are largely covering only nearby requirements. This just-in-time buying pattern, enabled by abundant imported stocks, prevents any strong price response to the increase in end-use demand. Overall, the market remains well supplied, with India firmly positioned as the key global demand hub but currently using that leverage mainly to secure volume rather than to bid prices higher.

Fundamentals & Weather

Global fundamentals are supportive of a loose-to-balanced lentil market. Canada and Australia remain the principal export origins feeding India, and recent reports point to solid exportable surpluses, even if Canadian production is somewhat lower than earlier peaks. High Canadian carry-in combined with strong Australian output continues to underpin the flow of competitively priced shipments into South Asia.

Weather in the main exporting regions has not generated major new concerns in the past few days, allowing harvest progress and logistics to sustain the brisk shipment pace into India. For the short term, any weather-related risk is more relevant for the 2026/27 balance sheet than for spot availability, given already large stocks at Indian ports. As a result, fundamentals currently skew toward supply comfort rather than scarcity.

Market Outlook & Trading Suggestions

The near-term outlook for masoor prices in India is for a soft-to-sideways pattern. While stronger seasonal purchasing in the coming weeks could lend support, substantial imported stocks and ongoing arrivals are likely to cap any significant rally. Prices may stabilize off the recent lows but are expected to stay below earlier peaks as long as ports remain well supplied.

• Importers / Traders: Consider maintaining only moderate long positions; use any seasonal uptick to scale out of high-cost stocks, as large imports and port inventories should limit upside.
• Dal mills / End-users: With ample nearby availability, stagger purchases rather than front-loading; look to cover short- to medium-term needs on dips, while avoiding aggressive forward coverage at current levels.
• Producers / Stockists (export origins): Comfortable global supply and a well-supplied India argue for disciplined sales; incremental rallies toward seasonal highs may present good hedging opportunities rather than a new uptrend.

3‑Day Directional Outlook (Spot & FOB)

• India masoor (domestic & imported): Bias soft to sideways; seasonal demand offers support but high stocks limit gains.
• Canadian FOB lentils (Ottawa): Expected broadly steady; current EUR values suggest a stable export floor.
• Chinese small green lentils FOB Beijing: Slight firm tone after recent uptick, but overall range-bound in the very short term.