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Summary:
As lentil and chickpea prices plummet to unremunerative levels, Australian farmers are rethinking their selling strategies. Fierce global competition and low Indian import demand have led many growers to store their produce in hopes of better prices later in the season.
Australian Lentil Prices Hit Rock Bottom
Australian lentil prices have dropped sharply, leaving farmers in South Australia and other major growing regions facing tough decisions. Lentil prices are currently hovering around $380–$390 per tonne, levels considered unprofitable by most producers. This steep decline has prompted many farmers to hold back their harvests, anticipating a rebound in global demand.
The fall comes at a crucial time, as the harvest season is in full swing across both Australia and Canada—two of the world’s top pulse producers. However, sluggish demand from major importers like India has further intensified price pressure.
Chickpea Market Trends Show Similar Strain
Like lentils, chickpea market trends are also unfavorable. Forward contracts for November–December have slipped below US$400 per tonne, a drop of nearly $20 since mid-September. On-farm prices are even worse, averaging less than $330 per tonne, nearly 50% lower than last year’s levels.
A year ago, Indian importers were purchasing aggressively to take advantage of zero-duty imports before the March 31, 2025 deadline. However, this year’s subdued interest has added to the challenges for Australian growers.
Global Commodity Prices Under Pressure
The global commodity prices for pulses remain under strain as both Canada and Australia compete for limited market share. This has pushed many Australian farmers to prioritize cash crops like barley, canola, and hay instead, opting for immediate liquidity over long-term storage risks.
While some farmers continue to store chickpeas and lentils in anticipation of a recovery, the ongoing bearish trend in cereals such as wheat and barley offers little comfort.
Indian Import Demand Remains Lukewarm
Despite the broader market slowdown, Indian import demand for pulses has shown occasional activity. Some Indian buyers have purchased a few cargoes, betting on a potential increase in consumption later in the year. However, these purchases remain limited and insufficient to drive significant price recovery.
Australia’s Pulse Production Outlook
According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), the 2025 harvest season will bring 2.1 million tonnes of chickpeas, down from 2.3 million tonnes last year, and 1.7 million tonnes of lentils, slightly up from 1.6 million tonnes. These figures reflect a resilient production environment despite the pricing challenges.
Conclusion
Australian lentil and chickpea growers are facing a difficult season, caught between weak international demand and falling global prices. While some are selling off other commodities for quick cash, many are choosing to hold their pulses in storage, hoping that global demand—especially from India—will strengthen in the coming months. The next few quarters will be crucial in determining whether this strategy pays off or further strains farmer profitability.