Is Falling Masoor Price In India A Warning Sign For The Future?

Masoor dal is an essential part of Indian cuisine and is widely consumed throughout the country. They are also a critical crop for Indian farmers, providing them with a significant source of income. However, the recent heavy arrivals of domestically grown masoor in the market have resulted in falling prices. In this article, we will discuss the current situation of masoor in India and its market outlook.

Highlights Of Decreased Masoor Rates

• Masoor Price In Madhya Pradesh- In Madhya Pradesh, the state that produces the most masoor in India, the price of average-quality masoor price per 100 kg in India is currently around 5,450 rupees which is less than the government’s minimum support price of 6,000 rupees. According to market experts, Indian farmers will harvest 1.4 million tons of lentils this year, an increase of 10%-15% from the previous harvest. However, rainfall in some areas has reduced the quality of lentils, which has affected the costs.

• Impact Of El Nino Weather Event On Indian Agriculture- There is an increasing likelihood of an El Nino weather event developing this summer. For India, it could result in hot & dry conditions during the upcoming kharif-growing season as it is the time when pigeon peas are cultivated. As consumers switch from pigeon peas to masoor, the consumption of masoor is anticipated to rise, creating a strong demand for masoor. The bullish masoor import forecast is also due to the short kharif season harvest of pigeon peas, which has resulted in high pigeon pea prices.

Competition For Canadian Masoor Exports

Canada is one of the major exporters of masoor daal to India. A broker predicts that there will be high demand for lentil in Canada’s top market this year, but there will also be tough competition. Australia recently signed a free trade agreement with India, ensuring duty-free access to that market, which means that Canada will face stiff competition from Australia.

Market Outlook In India

Masoor prices per 100 kg in India are expected to settle around 5,800 rupees in Delhi and then gradually rise to about 6,400-6,500 rupees by the time local supplies dwindle. The amount of crop that the government is scheduled to purchase is 100,000 tons, up from a minuscule amount in 2022 when prices were above the MSP. Market analysts predict a decrease in India’s imports, from an expected 770,000 tons in 2022–2023 to 650,000 tons in 2023–2024. However, some stakeholders believe that imports will rise by 100,000-200,000 tons due to the shift in consumption from pigeon peas to lentils.

OFB’s Insight

Masoor daal is a critical crop for Indian farmers, providing them with a significant source of income. The current falling prices of masoor daal in India are due to heavy arrivals of domestically grown lentils in the market, which has impacted the quality and prices. However, the bullish masoor daal import forecast is due to the increasing likelihood of an El Nino weather event and the shift in consumption from pigeon peas to masoor daal. Canada will face tough competition from Australia in its lentil exports to India. Overall, lentils have a bright future in India’s agriculture sector.

Read more: How Rice Shortage 2023 Is Affecting The World And India?

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