Lentils estimated to be five-year high, which rules below MSP in various mandis
A larger lentils (masur) crop, estimated to be a five-year high, is weighing on prices, which are currently ruling below the minimum support prices (MSP) levels across various mandis in the key producing regions. In the 2023-24 rabi marketing season, the MSP for masur is ₹6,000 per quintal.
Modal prices for lentils, a rabi season crop, range from ₹4,910 to ₹5,620 per quintal in Madhya Pradesh, the state with the highest production. On Friday, modal prices in Uttar Pradesh, the second largest producer of masur, are expected to be in the range of ₹5,300-7,100.
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According to the second advance estimate, masur production will be 15.99 lakh tonnes (lt) in 2022-23, up from 12.69 lt the previous year. This increase in output is due to increased area. According to trade estimates, masur production will be around 14 lt, up from around 11 lakh tonnes the previous year.
“The arrivals are good for our own lentils crop in several mandis, and prices are trading below MSP in the range of 5,400-5,700 per quintal, all depending on quality,” said Harsha Rai, Vice-President, Sales at Mayur Global Corporation, a pulses broker. She added that demand for processed pulses, particularly lentils, is very slow.
Selling a house
Nafed’s procurement of lentils under the price support scheme is extremely slow. So far, 523 tonnes of masur have been purchased, according to procurement data. “Masur is selling flats near MSP. “With the exception of tur and urad, all other pulses are either at or below MSP,” said Bimal Kothari, Chairman of the India Pulses and Grains Association, the apex trade body.
Factors
Factors such as a larger domestic crop and plentiful supply in other major producing countries such as Australia and Canada are weighing on masur prices. “Masur prices will remain range bound and are unlikely to rise due to the international market.” “Lentils are abundant in Australia and Canada,” said Rahul Chauhan of IGrain India.
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India, the world’s largest producer, and consumer of pulses, is also the world’s largest importer. Aside from tur and urad, India imports a significant amount of lentils to meet its growing demand. During 2021-22, India imported 6.7 lt of lentils worth Rs. 3,900 crore. In fact, lentil imports had decreased from 11.2 lt the previous year, while imports are expected to increase to more than 7.7 lt in the fiscal year ending March 2022.
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