The diplomatic row with Canada, among other factors, could potentially disrupt masoor imports into India. Masoor is primarily cultivated in Canada, and India is a significant importer of this commodity.
Fortunately, in recent years, India has been diversifying its sources of masoor imports. During this period, Australia’s share of total imports has steadily increased, while Canada’s share has declined. Therefore, if imports from Canada were to be halted, Australia could step in to meet demand.
While data from 2018-19 to 2021-22 shows Canada’s share in India’s total annual masoor imports consistently at 79-82 per cent and Australia’s at 6-20 per cent, the situation changed in 2022-23.
In that year, India imported approximately 850,000 tonnes of masoor, with Canada accounting for 56 per cent and Australia for 41 per cent. This trend shifted further in favour of Australia during the first three months of 2023-24. Between April and June of this year, India imported about 300,000 tonnes of masoor, with Canada’s share dropping to around 32 per cent and Australia’s rising to almost 67 per cent.
Trade sources suggest that if the current crisis persists, this matrix may further get tweaked to favour Australia. However, it’s worth noting that most Australian trade occurs through large vessels, which importers are cautious about bringing into India due to concerns about stock holding limits.
India’s annual masoor consumption stands at 2.2-2.4 million tonnes (mt), with 1.2-1.4 mt produced domestically, and the rest must be imported.
Masoor primarily thrives during the rabi season, with sowing expected to commence in the coming weeks.
Until a few years ago, Canada accounted for 70-80 per cent of masoor imports. Nevertheless, the recent shift towards Australian imports could prompt Canadian importers to consider rerouting their consignments through other countries to mitigate potential repercussions if the crisis escalates.
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