Toor Dal Prices Soar 45%: India's Production Shortfall Creates Export Opportunity for Lentils

India's domestic toor dal (pigeon pea) prices have risen 45% in 2025 due to consecutive poor monsoon seasons in Maharashtra and Karnataka. While this has triggered government intervention in the domestic market, it has simultaneously opened an export window for masoor dal (red lentils) and moong dal, which are in surplus. For international buyers, this creates an arbitrage opportunity — Indian masoor dal is currently 15-20% cheaper than Canadian red lentils on a CIF basis for Middle Eastern and South Asian destinations. We analyze the export policy implications, available surplus estimates, quality specifications, and why lentil importers should act before the next kharif season changes the equation.

Toor Dal Price Surge: The Opportunity Hidden in the Crisis

India's domestic toor dal (pigeon pea) prices rose 45% in 2025, driven by back-to-back poor monsoon seasons in Maharashtra and Karnataka — the two dominant toor-growing states. The government responded with import facilitation and domestic market intervention, suppressing further price escalation but not eliminating the underlying supply deficit. For international buyers, the toor dal crisis has created an indirect opportunity: Indian exporters sitting on surplus masoor dal (red lentils) and moong dal are offering these at competitive prices as they redirect capacity. Indian masoor is currently 15–20% cheaper CIF than Canadian red lentils to Middle Eastern ports.

+45% in 2025Toor Dal Price Rise

-15 to -20%Masoor vs Canada CIF

Good availabilityMoong Dal Surplus

Q1–Q2 2026Key Export Window

The Masoor Arbitrage: Why Act Now

Canadian red lentils have been the default procurement choice for many Middle Eastern and South Asian importers for over a decade — consistency, reliable quality, and strong logistics infrastructure made Canada the safe choice. In 2026, Indian masoor dal offers a compelling alternative: the CIF price differential of 15–20% is the widest in years, protein content is comparable (24–26% dry basis), and quality from the Bihar-UP production belt has improved significantly with better drying and cleaning infrastructure. The window is time-limited: the kharif 2026 crop will determine whether India remains in surplus from August onwards.

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Quality Specification for Red Lentils

For masoor dal export, specify: moisture ≤12%, broken ≤1%, foreign matter ≤0.1%, bright uniform orange-red colour (reject any yellow or brown discolouration — it indicates old stock), pesticide residue test (particularly for dimethoate and chlorpyrifos). Request packing in new food-grade BOPP bags — not re-used jute — to preserve colour and avoid contamination claims at destination.

Moong Dal Procurement Opportunity

Green moong (whole) and moong dal split are both in good supply from Rajasthan and MP in 2026. Sprouting-grade green moong exports to Southeast Asia (primarily Thailand, Malaysia, and Vietnam for bean sprout production) have been running at record volumes. For EU and North American health food buyers, certified organic moong dal is available with NPOP and USDA NOP certification. Protein content 23–25%, naturally rich in folate and potassium — strong nutritional positioning for the health food segment.

Pulses from Radiance Overseas

Masoor Dal (Red Lentils)Moong Dal SplitToor Dal (Arhar)