The prices of pulses could shoot up further due to the ongoing stand-off between Canada and India and it may affect the availability and price of masur (red lentil) in the coming days.
Prices of masur can see a rise if the supply chain is disturbed as India is a major buyer from Canada.
The rise in prices would add to the inflationary pressure on the economy as output in the country is expected to be hit by lower acreage because of poor rainfall.
As per the data released by the Ministry of Agriculture, area under pulses declined 5 per cent to 122.57 Lakh Hectare (LH) from 128.49 LH in the year-ago period.
Dal traders are also worried a lot due to the India-Canada tussle despite no retaliatory action was announced on trade sector.
Masur at present is the second cheapest pulse after chana. On an average, masur daal is now retailing in various parts of the country between `91-95/kilogram. Chana daal is cheapest at around `75-80/kilogram.
Mong and tur daal are on the higher side, retailing between `110 and `150 /kilogram respectively.
India’s consumption of lentils (masur) stands at about 2.4 million tonnes, of which the country produces about 1.2 million tonnes.
Sources said Canada is the largest source of red lentils for India with the annual import being pegged at around 4-5 lakh tonnes. “Australia can replace the Canadian market, if the supply chain is disturbed. The prices of red lentils are expected to increase in the retail market in the coming days,” said the sources.
India is one of the primary importers of Canadian lentils with import of the pulse from the country touching 11 lakh tonnes of masoor dal in 2022-23.
India imported around 0.95 lakh tonnes of lentils from Canada during April-June period in 2023, the import of masoor from Australia stood at 1.99 lakh tonnes.
The annual consumption of masur is likely to be 11 lakh tons.
Trade experts said one has to watch out for how political developments pan out to assess their economic impact.
Red lentil is the second most commonly grown rabi crop, with Uttar Pradesh and Madhya Pradesh reporting around 70 per cent of the domestic production. The annual consumption of masur is estimated to be around 18-20 lakh tonnes.
Bilateral trade between India and Canada has seen significant growth in recent years, reaching $8.16 billion in 2022-23.
Just a few days ago, Canada paused discussions on the proposed treaty with India. The decision came merely three months after both countries expressed their intent to finalise an initial agreement this year.
Besides traders and businessmen, students are also tensed due to this India and Canada stand off .
India and Canada’s rough diplomatic ties have led air ticket prices to soar. This is happening because travellers are looking to advance their plans, since both the countries are taking unprecedented measures amidst souring relations.
Spot costs for a direct ticket between New Delhi and Toronto have surpassed Rs 1.46 lakh, according to data from travel websites. On the route between Toronto and Delhi, it is more than Rs 1.01 lakh. Similar fares for New Delhi to Montreal cost over travellers close to Rs 1.55 lakh and over Rs 1.16 lakh in the opposite direction. Late bookings on a flight between New Delhi and Vancouver will cost travelers almost Rs 1.33 lakh, while passengers departing from Vancouver will pay almost Rs 1.3 lakh. India halted its visa services in Canada on Thursday, citing “operational reasons.