Masoor Market Update: These Are The Current Challenges Faced by Indian Farmers and Canadian Exporters

Masoor, also known as red lentils, is an essential staple in Indian households, and it is grown extensively in India. However, recent reports suggest that Indian farmers are struggling to sell their produce due to poor buying conditions, resulting in them selling it below the Minimum Support Price (MSP). Additionally, Canadian masoor exports to India declined in March 2023 due to the impact of domestic production and other factors as assessed by Ofbusiness. In this article, we will delve deeper into the challenges faced by Indian farmers and Canadian exporters. Here we go:

Why India Remains Largest Buyer Of Canadian Masoor?

Despite the decline in Canadian masoor exports, India remains the largest buyer of Canadian red lentils, importing a total of 33,501 tons in March 2023. However, this was significantly lower than the February 2023 shipment of 1,75,477 tons. In comparison, the United Arab Emirates imported 29,794 tons, while Turkey imported 20,388 tons.
Canada is considered more cost-effective for shipping red lentils to India than Australia, and the shipment time is also shorter. This makes Canada a preferred choice for Indian importers, although the recent decline in exports suggests that they may be turning to domestic production and other sources.

Unfavourable Factors Engulfing Masoor Market

• Poor Buying Conditions & Lower Prices– According to reports, Indian farmers are getting less than MSP for masoor dal, which has been fixed at Rs 6,000. This has resulted in a major setback for farmers as they are unable to recover their input costs. The estimated production in India for the year 2022-23 is 15.99 lakh tons, which indicates a surplus in the market. With lower demand for pulses, farmers are struggling to sell their produce and are being forced to sell them at lower prices.

• Weaken Canadian Masoor Exports- In addition to the current domestic situation, Canadian red lentil exports to India have weakened in March 2023 compared to February 2023. According to a recent report by the Canadian government agency, StatCan, Indian importers are cutting and preparing their produce, which has led to lower prices due to the possibility of impressive domestic production. Moreover, Indian importers also had the option of Australian masoor, where prices fell slightly due to record production.

• Large And Small Green Lentil Export– During the initial eight months of the 2022-23 marketing season (August 2022-March 2023), Canada exported a total of approximately 1,555,116 tons of produce to India, which is a jump of nearly 63% compared to the previous marketing season of 2021-22 (August 2021-July 2022). While the export performance of both large and small green dal was encouraging, the export of red lentils was disappointing.

OFB’s Insight 

Red lentil is an essential staple in Indian households, and both Indian farmers and Canadian exporters are facing challenges in the industry. Indian farmers are struggling to sell their produce below MSP due to poor buying conditions, while Canadian exporters face competition from domestic production and other sources. However, the encouraging performance of large and small green lentils in Canada is a positive sign, and the country may need to focus on improving the export of red lentils to maintain its position as a key exporter to India. Overall, masoor continues to be an important crop for both countries, and efforts must be made to address the challenges facing the production and export of this valuable pulse.

Read more: Mustard Crisis In Rajasthan And Haryana: Will Farmers Get Any Relief?

For real time commodity prices, latest news, and insights, please download the all NEW and all FREE OfBusiness APP.