Dried shelled lentils market in India

Earlier Report Observations

The market for dried shelled lentils in India grew steadily from 2018 to 2021, with volume expanding from 1.8 million tonnes to 2.2 million tonnes and value rising from $1.3 billion to over $2 billion. This expansion was initially supported by changes in trade regulations that influenced import volumes, which surged from 217 thousand tonnes in 2018 to over 1 million tonnes by 2020. The COVID-19 pandemic in 2020 caused global supply chain disruptions and altered domestic distribution channels due to government lockdowns, yet market access was maintained. By 2021, state-owned entities like NAFED were actively promoting lentil cultivation, contributing to a rebound in domestic production that supported market growth.

After a contraction in 2022 where market volume fell to 1.9 million tonnes and value dropped to $1.8 billion, the market rebounded sharply in 2023 to 3.1 million tonnes valued at $2.5 billion. The 2022 dip occurred despite ongoing policy support, including increases in the Minimum Support Price (MSP) to incentivize farmers, and a consumer shift towards plant-based proteins. The recovery in 2023 was driven by targets for record domestic production, aided by the adoption of Integrated Pest Management strategies to improve crop yields. Simultaneously, increased global production from major exporters like Canada, Australia, and Russia boosted import availability, significantly enlarging the total market supply.

Entering 2024, the government further raised the MSP for lentils to ₹6,700 per quintal for the Rabi season, although market prices remained below this support level. Reflecting stronger domestic output and a 15% rise in global production, lentil imports into India from April to November 2024 fell compared to the same period the previous year. Technological adoption in the food processing sector, particularly freeze-drying enhanced by government incentives, improved product shelf-stability and distribution efficiency for lentil-based products.

Production dried shelled lentils in India

In kind, 2017-2020, K t

From 2017 to 2020, India maintained the second-highest global position in dried shelled lentils production by volume.

Top producers of dried shelled lentils, 2017-2020

World map of production of dried shelled lentils, 2017-2020

India's dried shelled lentils production declined for the second year in a row. In 2020, the country produced 1 103 K t, marking a 10.2% decrease from the previous year. Over the 2017-2020 period, production fell by 9.9%, with a compound annual growth rate (CAGR) of -3.4%. The peak was in 2018 at 1 622 K t, which saw the largest increase of 32.5%. The most significant drop occurred in 2019, with a 24.3% decline.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following a two-year decline, India's dried shelled lentils production value rebounded. In 2020, output was valued at 1 133 M $ US, up 7.1% year-over-year. From 2017 to 2020, production value decreased by 7.9%, with a CAGR of -2.7%. The lowest point was in 2019 at 1 058 M $ US, which also recorded the largest decline of 13.5%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports dried shelled lentils from India

Exports in kind, K t

India's foreign supplies of dried shelled lentils increased for the third consecutive year. In 2020, exports reached 18 K t, a gradual rise of 4.5% from the previous year. Between 2017 and 2020, exports surged by 91.2%, equating to an annualized growth rate of 24.1%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

From 2017 to 2020, Bangladesh, Sri Lanka, and Qatar were the primary destinations for India's dried shelled lentils exports by volume. Bangladesh accounted for 43.4% of exports, Sri Lanka for 11.6%, and Qatar for 10.4%, together absorbing 65.5% of total exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

India's dried shelled lentils export value increased for the third year in a row. In 2020, exports amounted to 18.6 M $ US, a 24.6% jump from 2019. Over the 2017-2020 period, export value grew by 95.3%, with a CAGR of 25.0%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

Between 2017 and 2020, Bangladesh, the United States, and Sri Lanka were the key destinations for India's dried shelled lentils exports by value. Bangladesh led with 46.4% of exports, followed by the United States at 8.4% and Sri Lanka at 8.1%, collectively accounting for 63.0% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports dried shelled lentils to India

Imports in kind, K t

The market exhibited volatility during the observed period. Imports hit their lowest point in 2018 at 217 K t, with the largest decline of 80.7% that year. They then surged by 278.9% in 2019, reaching a high in 2020 of approximately 1 061 K t, a steep 29.1% increase from the previous year. From the low in 2018 to the high in 2017, volumes varied by 5.2 times.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, Canada dominated India's dried shelled lentils imports by volume, absorbing 75.9% of total imports, while the remainder was distributed among various smaller countries.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

The market showed signs of volatility over the observed period. Imports dropped to a minimum in 2018 at 91.9 M $ US, recording the largest decline of 87.3% that year. They then rebounded with the largest increase of 276.9% in 2019, climbing to 580.9 M $ US in 2020, a 67.7% gain from 2019. From the low in 2018 to the high in 2017, volumes shifted by 7.9 times.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Between 2017 and 2020, Canada remained the main source for dried shelled lentils imports to India by value, accounting for 74.7% of total imports, with the rest spread across other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020