September 15, 2020
IGrain’s Rahul Chauhan provides information on pricing and current inventories, as well as import figures and news from domestic and international markets.
Highlights from this week:
Mumbai
Lentil imports stood at around 5 lakh in the last two months. However, domestic demand has been weak. Importers were not able to move these stocks in market and there was no change in prices. Duty has been again raised to 30%.
Gram, Black Matpe, Pigeon Pea markets gained momentum during the current week but the lentil market remained calm due to selling pressure in the market. Prices of lentils at the ports declined by Rs50/100 and Kolkata remained Rs5,350-5,500/quintal; Mumbai shipment Rs.5,300/quintal, Australia containers Rs.5,450 per quintal. Similarly, with the above decline the price at Mundra Port was Rs.5,325; Hazira Port Rs.5,350; and Kandla Rs.5,301 per quintal.
Delhi
Both demand and selling of lentils in Delhi remained normal, leading to a correction of Rs.25/50 by weekend. With this improvement, small lentils reached Rs.6,450/7,200, Big Lentils Rs.6,050 and imported Rs.5,625 per quintal over the weekend.
Madhya Pradesh
The arrival of lentils is decreasing in Madhya Pradesh. Weak demand led to a decline in prices by Rs.25/50 per quintal.
Uttar Pradesh
There has been a decline in lentil arrivals in Uttar Pradesh mandis. The local lentil market in Uttar Pradesh was affected by the increase of imported sales. Lentils declined by Rs.50/100 during the current week. With this decline in the weekend Bareilly bold Masoor remained Rs.7,200, bold Masoor Rs.6,100, Kanpur Badi Masoor Rs.5,925, Lalitpur Badi Masoor Rs.5,500, small Masoor Rs.6,500 per quintal.
Chhattisgarh
Prices in the mandis of Chhattisgarh fell by Rs.50. With this decrease Bhatapara market remained at Rs.5,250 and Raipur Rs.5,600/5,650 per quintal in the weekend.
Red Lentil
Weak demand led to prices of around Rs.6,550/6,650 per quintal in the weekend.
More than 5.34 lakh tonnes of lentils imported in five months
A total of 5,34,403 tonnes of lentils were imported in India during the first five months of the current financial year (April-August 2020) following the reduction of the import quota.
India imported 46,920 tonnes in April; 39,829 tonnes in May; 73,422 in June; 1,66,620 tonnes in July; and 2,07,592 tonnes in August.
Earlier, 22,460 tonnes were imported in February and 62,011 tonnes in March 2020. Between February and August 2020, the gross import of lentils reached 6,18,874 tonnes. During the entire period (March-April) of the FY 2019-20, imports stood at 8,54,460 tonnes.
The Government reduced the import duty on lentils from 30% to 10% between June-August 2020 and this encouraged Indian importers to increase import volumes--especially from Canada.
The fourth advance of the Union Agriculture Ministry estimated a reduction on lentil production of 11.80 lakh tonnes in the 2019-20 Rabi season compared to a reduction of 14.40 lakh tonnes (third advance) and 12.30 lakh tonnes in the 2018-19 season. Annual lentil demand stands at around 2 million tonnes.
Australian lentil exports in May-July quarter at 1.87 lakh tonnes
About 1.87 lakh tonnes of lentils were exported from Australia to several countries including India in May, June and July 2020. This includes shipments of 70,000 tons in May, 59,000 in June and 57,000 tons of lentils in July.
According to the Australian Bureau of Statistics (ABS), Bangladesh was the main export destination (roughly 84,000 tonnes) followed by India (57,000 tons) and Pakistan (1,100 tons).
Lentil production in Australia estimated to fall by 7 percent
Australia's government agency, ABARES, estimates domestic production of lentils to decline by 7 percent compared to the previous year. According to the agency, sowing declined by 6 percent from 3.60 lakh hectares in the 2019-20 season to 3.38 lakh hectares in the 2020-21 season while production is expected to fall by 7 percent from 5.34 (2019-20) lakh tons to 4.97 lakh tons.
Rahul Chauhan
Director, IGrain India
igrainind@gmail.com
+91 9350141815
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Rahul Chauhan / India / Mumbai / New Delhi / Madhya Pradesh / Uttar Pradesh / Chhattisgarh / Red Lentil
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