Mumbai, 22 Nov (Commoditiescontrol): The global lentil market is set to experience significant transformations in the 2023-24 season, as detailed in a recent report by Statistics Canada. The report highlights a substantial 33% decrease in production, bringing the total down to 1.5 million tonnes (Mt). This sharp decline is primarily due to reduced yields in Western Canada, a crucial area for lentil cultivation.
A notable aspect of this shift is the steep decrease in red lentil production, now below 1.0 Mt. On the other hand, the production of large green lentils has shown a marginal rise, nearing 0.4 Mt. Additionally, the output of other lentil varieties is anticipated to drop to 0.2 Mt.
The overall lentil supply is projected to fall by 32%, influenced largely by lower carry-in stocks from past seasons. Consequently, exports are expected to diminish to 1.4 Mt, with India, the United States, and the European Union as the primary export destinations. Carry-out stocks are also forecast to decrease significantly, settling at 0.1 Mt.
Market responses to these supply challenges include a notable increase in lentil prices. The average price is predicted to surge by 20%, reaching a historic high of $980 per tonne, with a growing preference for higher-grade lentils in the market.
In Saskatchewan, Canada, October prices for large green lentils increased by $50 per tonne, while those for red lentils decreased by $60 per tonne. This pricing dynamic is largely due to a reduced export demand for red lentils. The forthcoming season is expected to see a decreased supply of high-grade Canadian lentils, further impacting prices. The gap between large green and red lentil prices has widened, with the former now commanding a $445 per tonne premium over the latter, up from last year's $350 per tonne.
The United States is also experiencing changes in its lentil market. According to the USDA, there is a 17% decrease in the area seeded to lentils, mainly in Montana. Despite this, an uptick in yields and lower abandonment rates are poised to result in a modest 4% increase in US lentil production, estimated at 0.26 Mt. The main export markets for US lentils include the EU, Canada, and Mexico.
(By Commoditiescontrol Bureau; +91-9820130172)
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