Reverberations Continue from “Dal Shock” in India

Photo courtesy of Shakun Dalal

The latest news from India suggests that the unprecedented high prices for pulses is not due solely to crop shortfall but to price gouging. Indian trade insiders and media report that a few Indian traders are buying up stocks of red lentils from Canada and using this to extract high prices and play the market, exacerbating existing fears caused by crop concerns. This has created chaos and panic across the pulse market resulting in wild price spikes. While this does not have a direct impact on dry beans, reverberations will be felt throughout the pulse market as the same buyers purchase all pulses.

The Government of India (GOI) is taking steps to determine responsible parties and bring an end to the so-called commodity “cartels.” This may have an impact on the ability to conduct business in the short term but USDBC’s on the ground Representative in India is confident things will be sorted out in short order. A delegation of U.S. dry bean dealers and growers will travel to India this month to attend the Pulse Conclave and meet with potential buyers. While we are aware of the situation and it’s potential impact in the short-term, we anticipate a successful meeting where U.S. industry representatives will have the opportunity to establish important new contacts, leading to future business opportunities.