Lentils Market: Stable Undertone as Indian Urad Tightens and Global Values Ease

Indian pulse markets are quietly firming as urad (black gram) tightens on lower arrivals and approaching festival demand, while global lentil export values show a mildly softer tone in EUR terms. Limited port stocks and constrained mandi supplies in India are supporting urad, but expectations of higher imports from Myanmar and Brazil, and a better summer crop in parts of Karnataka, are likely to cap any sharp upside. The lentil complex sits between these opposing forces: firmer regional pulse sentiment in India on the one hand, and slightly easing North American and Chinese FOB offers on the other. Canadian red and green lentil prices in EUR have slipped marginally over recent weeks, reflecting improved global availability and competitive Black Sea and Australian offers, even as overall pulse demand remains seasonally constructive. Near term, the market is biased to sideways-to-firm for India-focused grades, while bulk export lentils for Europe and the Middle East face mild downward pressure.

Prices

Domestically in India, urad prices are steady to slightly firmer on tightening arrivals and better trade sentiment. In Chennai, imported FAQ urad is quoted around the equivalent of roughly 720–740 EUR/t, while SQ quality is closer to 780–800 EUR/t, with Delhi trading at a modest premium to Chennai across both grades.

By contrast, recent export indications for mainstream lentil origins show a mild easing. Canadian FOB Ottawa values (converted to EUR) have edged down since late July: red football lentils from about 2.30 to 2.27 EUR/kg, Laird green lentils from 1.40 to 1.37 EUR/kg, and Eston green lentils from 1.35 to 1.33 EUR/kg. Chinese small green lentils are mixed, with conventional around 1.15 EUR/kg and organic near 1.24 EUR/kg.

Supply & Demand

In India’s urad segment, domestic summer-crop arrivals have declined, especially in key producing mandis, leaving market participants reliant on limited mandi stocks and port inventories. Karnataka’s Bagalkot region is reporting a favourable crop, and supplies from Maharashtra and Karnataka are expected to improve gradually through September, but current flows are insufficient to pressure prices.

Import flows are a key balancing factor. Offers from Myanmar remain broadly steady, with FAQ urad for August–September shipment around 900 USD/t CNF and SQ near 985 USD/t CNF. Smaller parcels are expected through August, with a larger Myanmar shipment likely only toward late September. Market participants are also closely monitoring additional import potential from Brazil, which could become critical in containing any spike during the festival demand window.

On the demand side, dal mill purchasing is still largely need-based. Consumption has not yet reached its seasonal peak, but buying interest is projected to improve notably after mid-August as demand for urad dal, urad gota and related processed products increases. The end of the Adhik Maas period should further support household and food-service consumption, reinforcing a moderately bullish near-term demand profile for urad and, by extension, a firmer undertone across related pulse segments.

Fundamentals & Weather

Fundamentals in India’s urad market currently lean mildly supportive: reduced mandi arrivals, limited port stocks and approaching seasonal demand are offset by the prospect of higher imports and improving domestic crop prospects. Delhi quotes of roughly 750–770 EUR/t for FAQ urad and 820–840 EUR/t for SQ quality reflect this balanced but firm undertone.

Globally, the lentil complex is influenced by improving North American and Black Sea supply expectations. Recent Canadian crop outlooks point to broadly adequate lentil production and higher carry-out stocks compared with previous tight years, which is consistent with the gradual softening of FOB prices in EUR. At the same time, strong structural demand from core importers such as India, Turkey and the UAE continues to prevent any sharp downside in export values.

Weather-wise, key lentil-growing areas in the Canadian Prairies and the U.S. Northern Plains currently face mostly seasonal conditions, with no widespread extreme stress reported in the last days. Localised dryness remains a watchpoint, but, for now, does not materially alter the global balance. In India, monsoon progress and its impact on the new urad crop remain a critical variable for Q4 2026 pulse availability.

Trading Outlook

• Importers into India: Consider covering near-term urad and lentil needs ahead of the mid-August to late-September festival demand surge, while remaining cautious on volume as larger Myanmar and Brazilian arrivals later in September could cap further upside.
• Exporters in Canada and China: With FOB lentil prices easing modestly in EUR terms, maintaining competitiveness into South Asia and the Middle East will likely require flexible offer strategies, particularly on green lentils where competition from Russia is strong.
• Dal mills and processors: Gradual pre-festival stocking appears prudent given the supportive Indian domestic undertone; however, avoid overextending coverage far beyond September until the scale of new-crop arrivals and confirmed import volumes becomes clearer.

3-day Price Direction (Indicative)

• India (urad, FAQ/SQ, key mandis): Bias steady to slightly firmer in EUR terms as arrivals stay tight and buying interest improves.
• Canada FOB (red and green lentils): Slight downward to sideways bias, with buyers testing lower bids amid comfortable forward supply expectations.
• China FOB (small green lentils): Largely steady; minor adjustments possible depending on currency moves and regional demand signals.