Pigeon Pea Market Under Pressure as Myanmar Imports Weigh on Indian Prices

Pigeon pea prices in India remain under clear downward pressure, with weak dal mill demand and aggressive Myanmar imports pushing spot values well below the government support price and likely forcing a test of lower levels into late May. Indian pigeon pea markets are navigating a distinctly bearish phase as import flows from Myanmar and Africa collide with subdued offtake from dal processors. Key hubs such as Chennai, Delhi, Mumbai and Guntur have all registered fresh declines in lemon-grade and imported lots, while traders report panic selling and a widening disconnect between CIF import costs and domestic wholesale prices. With government procurement still modest versus total arrivals and summer-crop inflows only expected toward late May–early June, near-term sentiment remains soft, even as European pea prices appear broadly stable by comparison.

Prices & Spreads

Lemon-grade pigeon pea at Chennai, India’s main arrival port, fell for a second session, easing by about 50 rupees per quintal to the equivalent of roughly EUR 71.5–71.8 per quintal for May–June shipments. Delhi mirrored the decline, with similar quality lots trading around EUR 73.5–73.7 per quintal, while Mumbai hovered close to Chennai levels near EUR 71.5–71.8 per quintal.

At Guntur in Andhra Pradesh, imported African-origin pigeon pea also weakened. Sudan-origin lots slipped by about 50 rupees to roughly EUR 63.3 per quintal, and white pigeon pea lost about 150 rupees, trading slightly below this range. Against India’s Minimum Support Price of around EUR 75–76 per quintal, spot wholesale prices are structurally discounted, underlining the depth of current market weakness.

In Europe, dried pea prices show a more stable tone: recent offers indicate green peas from Great Britain around EUR 1.02/kg FOB London and marrowfat peas at about EUR 1.33/kg, with Ukrainian green peas near EUR 0.34/kg and yellow peas at about EUR 0.26/kg FCA Odesa. These values have been largely flat in recent updates, suggesting that the pronounced downside pressure is currently concentrated in the Indian pigeon pea complex rather than the broader global pea space.

Supply & Demand Dynamics

The key bearish driver is the combination of persistent weak demand from dal mills and continuous arrival of imported pigeon pea, mainly from Myanmar and African origins. Despite the evident disparity between import landing costs (e.g., Myanmar CIF at about USD 800/tonne, roughly EUR 0.73/kg) and current domestic market prices, sellers are offloading stocks aggressively, creating a feedback loop of lower bids and panic selling.

Government procurement at the Minimum Support Price is ongoing in several Indian states, but the absolute volumes remain small compared with total market arrivals. This limits the policy buffer that could otherwise absorb excess supply or set a firmer floor under local prices. As long as Myanmar exports continue uninterrupted and Indian dal processors buy selectively, spot markets are likely to remain oversupplied.

Globally, the relative firmness and stability in European pea price indications imply that the current stress is primarily domestic and regional to India’s pigeon pea segment, rather than a universal pulse market downturn. Nevertheless, if Indian prices remain depressed, there is potential for trade flows and substitution effects to emerge later in the season, particularly into South Asian and African demand outlets.

Fundamentals & Policy Context

The structural gap between India’s MSP (about 8,000 rupees per quintal, or near EUR 75–76) and current wholesale pigeon pea prices is the central fundamental issue. Market participants widely acknowledge that current price levels are difficult to justify against import costs, but sentiment is overriding fundamentals as liquidity needs, credit constraints, and fear of further falls push farmers and intermediaries to sell.

Import prices from Myanmar for the 2026 crop season, quoted around USD 800/tonne CIF for May–June, and Mozambique white pigeon pea around USD 630–640/tonne CIF, still translate into higher levels than current internal wholesale prices in many Indian markets after currency conversion and handling costs. This points to compressed margins for importers and suggests that, under normal conditions, local prices should eventually gravitate higher. However, until procurement policies are scaled up or import volumes moderate, this rational re-alignment is being postponed.

Fundamentally, the market is waiting on two potential stabilisers: stronger government procurement at MSP, and a shift in import economics via higher Myanmar export prices or logistical disruptions. Absent these, the path of least resistance over the coming fortnight remains sideways to lower.

Weather & Crop Outlook

New summer-season pigeon pea arrivals from Andhra Pradesh and Gujarat are expected toward late May, with early field feedback pointing to generally normal progress. From a market perspective, these arrivals could provide psychological support if volumes are moderate, but they also carry the risk of reinforcing oversupply if demand remains soft.

Weather in key southern and western Indian pigeon pea belts will be closely watched in the run-up to the monsoon onset, as any adverse conditions could trim yield expectations later in the year. For now, however, weather is not the primary driver of price direction; trade flows and policy remain far more decisive for short-term market behaviour.

Short-Term Market & Trading Outlook

• Bias: Bearish to sideways for pigeon pea in India over the next 1–2 weeks, with potential for further tests of lower levels before any stabilisation.
• Producers (India): Consider staggering sales where liquidity permits and monitor government procurement windows closely; pricing well below MSP argues against aggressive forward selling at current spot levels.
• Importers/Traders: Exercise caution on new long import commitments from Myanmar given the narrowing margin between CIF costs and depressed domestic prices; focus on hedged or pre-sold cargoes.
• Buyers (Dal mills, regional users): Near-term dips offer selective buying opportunities, but avoid heavy front-loading while import flows remain strong and policy interventions uncertain.

3-Day Directional Price Indication (EUR)