India Lentils Market- Trend Analysis & Forecast to 2030

India Lentils production reached ** thousand tonnes in 2023 and is projected to grow at a CAGR of **% from 2024 to 2030. The India lentils market is a critical segment of the global pulse industry, characterized by robust domestic demand and a growing footprint in international trade. With India being one of the largest consumers and importers of lentils globally, the market is set to grow significantly by 2030, driven by dietary preferences and population growth.

Market/ Product Overview

The lentils market in India holds immense potential owing to the country's vast population, which relies heavily on pulses as a primary protein source. Lentils are a staple food across various regions in India, consumed in multiple forms such as dals, soups, and snacks. Despite high domestic demand, India’s lentil production falls short, necessitating substantial imports. The market’s growth trajectory is influenced by government policies, trade dynamics, and changing consumer preferences. By 2030, the India lentils market is projected to witness a CAGR of **%, driven by increasing health awareness and the rising adoption of plant-based diets.

India Significance in the Global Lentils Supply

India plays a pivotal role in the global lentils supply chain as both a major consumer and importer. Its reliance on countries like Canada and Australia for lentil imports underscores its significance in shaping global trade flows. India’s vast market size creates demand spikes, influencing global lentil pricing and trade policies. Furthermore, the nation’s export of lentil-based processed products is steadily growing, positioning India as a key player in the value-added segment of the global lentil market.

India Lentils Supply & Demand Trend

India’s lentil production has been marked by moderate growth (7.84% in the last 5 years), driven by government incentives and advancements in agricultural practices. In 2023-24, India’s lentil production stood at approximately ** million metric tons, while the demand exceeded ** million metric tons. This demand-supply gap necessitates imports, primarily from Canada and Australia. Rising consumer preference for plant-based protein and the integration of lentils into various food products is expected to drive domestic demand further.

India Lentils Market Growth Factors

The growth of the India lentils market is fueled by multiple factors, including the rising awareness of the health benefits associated with lentil consumption. Lentils are rich in protein, fiber, and essential nutrients, making them a preferred choice for health-conscious consumers. The shift toward plant-based diets, spurred by environmental and ethical considerations, has further bolstered lentil consumption. Additionally, government initiatives such as minimum support prices (MSP) and subsidies for pulse cultivation have encouraged farmers to increase lentil production. The burgeoning middle-class population with rising disposable income is also contributing to market expansion by driving demand for processed and packaged lentil-based products.

India Lentils Market Restraints & Challenges

The India lentils market faces significant challenges, including limited arable land and fluctuating climatic conditions that impact production. Erratic monsoons and water scarcity hinder consistent yield, posing a risk to supply stability. Additionally, the dependence on imports makes the market vulnerable to international trade policies and price fluctuations. High import duties and non-tariff barriers can further escalate costs, impacting consumer affordability. The lack of advanced storage and transportation infrastructure results in post-harvest losses, adding to the market’s constraints.

India Lentils Industry: Supply Chain Constraints and Value Chain Challenges

The lentils supply chain in India is fraught with inefficiencies, particularly in storage and distribution. A significant portion of lentils is lost due to inadequate warehousing facilities and poor transportation networks. These bottlenecks inflate costs and reduce the profitability of stakeholders. Additionally, the fragmented nature of the supply chain, with multiple intermediaries, hampers seamless operations. Farmers often face challenges in accessing markets directly, leading to exploitation by middlemen. The lack of quality assurance mechanisms also affects the competitiveness of Indian lentils in the global market.

India Influence on Global Lentils Prices

India’s price-setting power in the lentils market is limited due to its dependence on imports to meet domestic demand. However, the nation’s sheer market size does influence global pricing trends. During periods of high domestic demand or reduced production, India’s import activities can cause price surges in international markets. Government interventions, such as setting import duties and offering subsidies, also play a crucial role in determining local prices.

Over the past decade, lentil prices in India have shown considerable volatility, driven by fluctuations in production, import policies, and global supply dynamics. For instance, in 2020, import prices surged due to global supply chain disruptions caused by the COVID-19 pandemic. Wholesale prices in India have also varied seasonally, peaking during lean production periods and stabilizing post-harvest. The average import price of lentils ranged between INR ** per kilogram in recent years, while wholesale prices hovered around INR ** per kilogram, depending on quality and region.

Lentils End-Use Industries

Lentils are integral to several end-use industries in India, spanning food processing, hospitality, and retail. In the food processing sector, lentils are used to produce ready-to-eat meals, soups, and snacks, catering to urban consumers seeking convenience. The hospitality industry, including restaurants and catering services, relies heavily on lentils for preparing traditional Indian dishes. The retail sector, encompassing both organized and unorganized segments, offers a wide range of lentil products, from bulk supplies to branded, packaged goods. Additionally, lentils are gaining traction in the health and wellness industry, where they are marketed as a key ingredient in protein supplements and diet foods. The growing demand from these industries underscores the versatility of lentils and their critical role in the Indian economy.

India Lentils Trade (Export & Import) Trend

India is predominantly an importer in the global lentils market, sourcing from countries like Canada, Australia, and the United States to bridge its demand-supply gap. In 2022, India imported approximately ** million metric tons of lentils, valued at over USD ** billion. Exports, though minimal, are gradually increasing, primarily focusing on processed lentil products. The government’s trade policies, including import duties and quotas, significantly influence the market. Recent efforts to diversify import sources and promote domestic production aim to reduce reliance on imports while boosting exports.

India Lentils Market Competitive Analysis

The competitive landscape of the India lentils market is characterized by a mix of domestic producers, importers, and distributors. Major players include established agricultural firms, cooperatives, and multinational corporations. Key players are leveraging technology to enhance production efficiency and quality. The market also witnesses stiff competition among importers, who compete on pricing, quality, and distribution capabilities. The rise of private-label brands in the retail sector has further intensified competition. Companies are increasingly focusing on branding and marketing to differentiate their products and capture market share.

List of Key Companies (Suppliers/ Processor/ Exporters),

■ Tata Consumer Products Limited
■ ITC Limited
■ Hindustan Unilever Limited
■ Adani Wilmar Limited
■ Tinna Trade Limited
■ ADM Agro Industries

Future Outlook

The India lentils market is poised for robust growth by 2030, driven by increasing health awareness and demand for plant-based proteins. Government initiatives to boost domestic production and improve infrastructure will further support the market. Innovations in processing and packaging are expected to create new growth opportunities, ensuring India’s continued prominence in the global lentils industry.