MarketsFarm — Disappointing monsoon rains in India this year are expected to cut into the country’s pulse production, according to reports out of the country.
Crop production in India is highly dependent on the monsoon rains that typically soak the country from June through September, but the moisture to date was about nine per cent off the average through the end of August, according to the India Meteorological Department.
Reports out of the country estimate that pulse yields could be down by about 15 to 20 per cent, with seeded area also down by nine per cent due to the lower moisture levels.
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Lower yields and the resulting increase in prices should see the Indian government look for measures to ease food inflation, including limiting exports and increasing imports.
India’s Department of Consumer Affairs is already reportedly in the market tendering for lentils, with an import duty exemption extended until March. While there is still a 50 per cent duty on peas, analysts expect that could be removed as well.
While Canadian crops could fit into any increased demand from India, Canadian pea and lentil production is also forecast to be on the smaller side this year, with Statistics Canada recently pegging the crops at 2.2 million and 1.5 million tonnes respectively.
— Phil Franz-Warkentin is an associate editor/analyst with MarketsFarm in Winnipeg.
