Even though India is seeing an early start to the monsoon season, the lower production and high demand expectations are a bit bullish for lentils prices.
While lentils prices have fallen dramatically with India’s import tax, it’s time to look at the next major factor:
If you’re thinking that India’s import tax on lentils is going to calm down, we would encourage you to rethink that one. The situation is far from over.
What are the grain market analysts in India saying about the effect of the Indian import taxes on lentils?
In India, food production is slated to be up 0.9% this year.
Specifically as it relates to pulses, volumes are forecasted to grow by 3.5%.
What’s this mean for lentils prices?
While there were some distractions to Prime Minister Trudeau’s recent visit to India, we have to agree that it did open up some issues on pulses.
After a few weeks without rain and Canadian Prime Minster there face-to-face, is India starting to come its senses about pulse import taxes?
India’s 30% import tax on lentils introduced in December 2017 certainly felt like a kick in the face too many.
While it doesn’t feel great, it actually could be worse!
After another year of values on the decline, is 2018 going to be the year that lentils are going to stabilize and/or increase?
GrainCents digs in.
Today, the Indian Government announced another bomb for the pulse markets:
A 30% import tax on lentils.
By now we know that the Indian government isn’t thinking through the broader implications of import taxes on pulse crops.
This has been cemented by their most recent policy update towards pulses.
There are rumblings of policy changes in India regarding pulse crops.
How might this impact the chickpeas market?
Last year the Indian government bought a lot of pulses to support a crashing market.
And now it wants to sell it back into the market.
Surprise: Indian government pulse crop demand isn’t demand at all