Lentils Market: Shallow Price Dip Amid Structurally Tight Pulses Supply

Lentil and wider pulses markets are experiencing a shallow price correction driven by short-term buying caution rather than a structural easing of fundamentals. Tight black gram (urad) supply in India and constrained government stocks continue to underpin the complex, limiting downside for lentil values as well.

The current softening in Indian black gram wholesale prices, combined with stable Canadian FOB quotations for key lentil types, signals a market pausing after earlier strength rather than entering a bear phase. Dal processors in India are buying hand-to-mouth, while import parity issues with Myanmar black gram and a weaker rupee are effectively placing a floor under prices. For international lentil buyers, this creates a narrow window for tactical coverage before consumption-season demand and potential restocking in India reassert upward pressure.

📈 Prices & Spreads

Black gram in India eased on 6 April 2026 across major hubs, but the declines were modest relative to earlier gains. FAQ grades fell roughly 25–50 rupees per quintal in Chennai, Delhi and Mumbai, while some centres such as Kolkata remained steady, and SQ (superior) material saw somewhat larger adjustments.

At the same time, Myanmar-origin black gram for April–May shipment softened by about $5 per tonne to around $855/t CIF for FAQ and $950/t CIF for SQ, yet still sits at a premium to current Indian wholesale equivalents once landed costs and currency are factored in. This misalignment is discouraging aggressive importer selling and supports a broader floor under South Asian pulses values, including lentils.

FOB quotations for key lentil origins remain broadly steady in early April. Using indicative FX to convert to EUR, current offers imply approximately the following levels:

Product	Origin	Delivery	Latest Price (EUR/kg)	1-week Change (EUR/kg)
Lentils dried, Red football	Canada	FOB Ottawa	≈ 2.58	0.00
Lentils dried, Laird Green	Canada	FOB Ottawa	≈ 1.75	0.00
Lentils dried, Eston Green	Canada	FOB Ottawa	≈ 1.65	0.00

Chinese small green lentils, both conventional and organic, show only marginal week-on-week movements, with latest FOB Beijing indications around 1.16–1.25 EUR/kg, confirming an overall sideways international price environment for lentils despite volatility in related Indian pulse markets.

🌍 Supply & Demand Balance

The key tension in the complex lies in India’s black gram fundamentals. Central government reserves stand near 80,000 tonnes, well below the 350,000-tonne buffer norm, significantly limiting the scope for large-scale public market intervention. This constrained safety net keeps the broader pulses market—including imported lentils—sensitive to any demand acceleration or weather-related supply shocks.

New black gram arrivals from Andhra Pradesh are entering domestic markets, but yields are running below last year, reinforcing a structurally tight backdrop. Dal mills are currently purchasing only to immediate requirements, yet baseline demand is maintained by seasonal papad manufacturing and firm consumption in southern states such as Tamil Nadu and Karnataka. For lentils, this translates into a demand floor, as Indian buyers can quickly pivot between pulse types when relative prices move.

📊 Fundamentals & External Drivers

Import economics are a central driver. Myanmar black gram values, when combined with a weaker Indian rupee, imply landed costs that sit above prevailing domestic wholesale prices. This erodes importer margins and is suppressing forward selling interest, effectively capping downside in regional pulse markets. Lentil exporters into South Asia must therefore assume continued price support from constrained black gram inflows.

In parallel, stable Canadian FOB lentil prices indicate that exportable surpluses are not under acute pressure, but neither are they abundant enough to trigger a broad-based selloff. With international freight and currency still volatile, buyers face limited arbitrage opportunities to significantly undercut current spot levels in destination markets, especially in Europe and the Mediterranean where demand from food processing and plant-based proteins remains structurally firm.

📆 Short-Term Outlook (2–4 Weeks)

Over the next two to four weeks, the most likely scenario is price stabilisation in black gram with a bias to mild recovery as Indian dal mills eventually restock. Given the tight official stocks and lower productivity in Andhra Pradesh, any uptick in domestic demand or minor supply disruption could quickly translate into higher offer levels.

For lentils, this backdrop points to a consolidation pattern rather than a deep correction. European buyers sourcing black gram and lentils for food processing should view the current softness as a limited buying window. Once seasonal consumption gains momentum and India’s restocking cycle begins, both regional and global pulse prices are likely to firm.

🧭 Trading Guidance

• European food processors: Consider advancing coverage for Q2–early Q3 needs during the current sideways phase, focusing on Canadian red and green lentils while black gram-linked sentiment is temporarily subdued.
• Importers into India: Be cautious with new Myanmar black gram commitments at current CIF levels; currency risk and weak near-term mill demand argue for staggered purchases rather than full coverage.
• Producers/exporters: Avoid aggressive discounting; structurally tight black gram supply and low Indian government stocks point to improving bargaining power once restocking emerges.

📍 3-Day Directional View (EUR Terms)

• Canadian FOB lentils (Ottawa): Sideways to slightly firm; offers expected to hold near current EUR/kg levels over the next 3 days.
• Chinese FOB small green lentils (Beijing): Largely stable; minor intra-day adjustments possible but no strong trend signal.
• India-linked delivered prices (Europe/MENA): Mildly supported by a floor in black gram values and a weaker rupee, but major moves unlikely in the immediate 3-day horizon.