Lentils Market: Competitive Offers as Indian Pulse Demand Softens

Indian pulse demand has softened noticeably in early 2026, with black gram imports from Myanmar down about 15% year on year, keeping a lid on buying appetite across the wider pulse complex. For lentils, this translates into generally competitive export offers from Canada and China, while downside in EUR prices appears limited unless Indian demand weakens further or weather turns decisively favourable in key origins. Export data for Myanmar’s black gram underlines the shift in sentiment: shipments to India fell to 260,799 tonnes in January–April 2026 from over 305,000 tonnes a year earlier, with March and April exports contracting by around 40% and 25% year on year respectively. India’s kharif sowing data show black gram area up 17% year on year, signalling that domestic production should remain strong and that import urgency across pulses will stay subdued into the second half of 2026. For lentil users in Europe and Asia, this environment is creating a window where raw material is available at competitive prices, but any production shortfall or policy-driven buying in India could quickly reverse the balance.

Prices & Short-Term Trends

FOB offers in North America and China indicate a mildly softer tone over the past month in EUR terms, consistent with the broader easing in pulse import demand from India. Canadian FOB Ottawa values currently stand around EUR 1.47/kg for Laird green lentils, EUR 1.44/kg for Eston green and about EUR 2.30/kg for red “football” types, all slightly below levels seen in mid-April. Chinese small green lentils, both conventional and organic, are also marginally lower, reflecting competitive positioning against Canadian origins rather than any acute supply squeeze.

Compared with indications from other international price surveys, Canadian export values remain within the middle of the global range for lentils, suggesting that recent declines are more a function of sentiment and freight-normalisation than of a structural oversupply. With the broader pulse complex constrained by weak Indian mill buying and policy uncertainty, any sustained price rally in lentils is likely to meet resistance unless there is a clear weather or policy shock that tightens the balance sheet.

Supply & Demand Backdrop

The sharp slowdown in Myanmar’s black gram exports to India is a critical signal for all pulse markets, including lentils. With over 90% of Myanmar’s black gram historically destined for India, the roughly 15% year-on-year drop in January–April shipments confirms that Indian processors are relying more heavily on domestic supply and are limiting imports to immediate needs. This is reinforced by India’s latest kharif planting data, which show black gram sowing area expanding from 3.58 lakh hectares to 4.20 lakh hectares as of 1 May 2026, pointing to robust domestic output later this year.

For lentils, India is already moving to enhance self-sufficiency through targeted support and higher minimum support prices, especially for red lentils. More broadly, the new national mission for self-reliance in pulses and the latest operational guidelines confirm a policy bias towards expanding pulse production, including masoor (red lentils) and urad (black gram). This combination of expanding acreage and policy support suggests that India’s net import requirements for pulses may stabilise or even edge lower over the medium term, capping upside demand for imported lentils unless weather disappoints.

Outside India, demand from Europe and other Asian markets remains steady but unspectacular, with buyers generally covered for nearby needs and showing little urgency to extend coverage far into new crop. Processors using urad dal and related products note that Myanmar-origin material is currently available at attractive levels, which indirectly relaxes substitution pressure on lentils in blended and value-added products. This creates a temporarily comfortable supply cushion for lentil importers, especially in Europe and the Middle East.

Fundamentals & Weather

On the supply side, planting intentions in Canada point to a modest reduction in lentil area for 2026/27, but this is being offset in the short term by comfortable old-crop stocks and a generally benign weather outlook. Recent cool conditions in parts of Manitoba and Saskatchewan have delayed some seeding, but agronomists expect progress to catch up as temperatures normalise, with only minor impacts on total area. Unless prolonged frost or excessive moisture materialises in May–June, the North American production outlook remains broadly neutral for prices.

In India, early-season agro-meteorological guidance for May 2026 suggests mixed conditions: localised heat episodes could affect some pulse-growing belts, but overall patterns are seen as favourable for kharif land preparation ahead of monsoon onset. Combined with the already reported 17% increase in black gram sowing area, the risk scenario for the global pulse complex currently looks skewed towards adequate or slightly higher South Asian output rather than a shortfall. For lentils specifically, this keeps the focus on trade flows and policy rather than on immediate weather-driven supply shocks.

The key uncertainty remains whether India will experience any localised production setbacks later in the season that force a renewed import wave in black gram and lentils. A sharp rebound in Indian buying would quickly absorb Myanmar’s current supply overhang and tighten availability for European and Asian importers, particularly in higher-quality segments. For now, however, spot fundamentals justify the current competitive pricing environment.

Outlook & Trading Recommendations

• European and Asian buyers: The present combination of subdued Indian demand, Myanmar’s export overhang in black gram and slightly softer Canadian lentil offers provides an opportunity to secure coverage on a staggered basis for Q3–Q4 2026. Avoid overcommitting far beyond the upcoming Indian kharif harvest, when clearer production data could shift the balance.
• Importers using both urad and lentils: Take advantage of competitive Myanmar-origin black gram and urad dal to reduce immediate reliance on lentils in flexible formulations, but maintain optionality to switch back should Indian policy or production spark a sudden rally in black gram prices.
• Producers and exporters in Canada and China: With India prioritising self-sufficiency, focus on diversifying destination markets and locking in forward sales with European and Mediterranean buyers while freight and currency conditions remain supportive.

Over the next three trading days, lentil export offers from Canada and China are likely to remain broadly stable in EUR terms, with a mild downward bias if seeding in the Canadian Prairies accelerates and freight stays benign. Barring a surprise policy move from India or an abrupt weather event, price volatility should stay contained, offering a relatively calm window for executing planned purchases.