Large lentil crop sends Australian prices lower

See how one of the cropping industry’s shining lights has come crashing down as lentil prices hit a six-year low.

Australian lentil prices have slumped to their lowest levels since 2019, with a global glut of supply and uncertain Indian demand weighing heavily on the market.

In Victoria, hallmark lentil prices fell to $580 a tonne this week, down from $940 a year ago, with large domestic crops facing stiff competition from unexpectedly high Canadian yields.

Market Check market research analyst Richie Mould said the downturn reflects both record Australian production and a shift in global demand patterns, particularly from India.

He said it was likely farmers would choose to store lentils on farm and for a significant market shift to come into effect something signficiant would need to occur such as a major weather event.

He said growers had enjoyed several years of strong prices, supported by robust Indian demand and poor crops in other major producing countries, particularly Canada.

“Over the past few seasons, this combination helped keep Australian lentil values high,” he said.

Farmers are keeping an eye on sliding lentil prices. Picture: Yuri Kouzmin

Mr Mould said lentils still offered strong agronomic benefits as a rotation crop, which meant many growers would continue planting despite lower prices.

“For now, the market is under pressure, and growers will need to manage expectations carefully while keeping an eye on both domestic conditions and international developments,” he said.

The Australian Bureau of Agricultural and Resource Economics and Sciences forecasts lentil production will increase 34 per cent to a record 1.7 million tonnes in 2025–26, 95 per cent above the 10-year average.

Marnoo agronomist Rob Fox said while lentil prices were down, the crop remained an important part of rotations.

“Lentils provide strong agronomic benefits, helping with nitrogen levels and weed control, so even at lower prices they are still a valuable crop,” he said.

Birchip farmer John Ferrier said growers were watching markets closely and they were aware of the large stock that were affecting prices.

“Many farmers would be prepared to store lentils on farm rather than take the current low prices,” he said.

“It’s about holding your nerve and waiting for the market to correct itself,” he said.

DLF seeds agronomist Frank McRae from Orange, NSW said lentil plantings had increased and the crop was now being grown in what was once considered non-traditional areas.

He said the crop’s reliability in lower-rainfall areas meant it was a popular option for farmers.

“Growers have seen the benefits of lentils as a rotation crop providing nitrogen and even with lower prices this season, they are likely to remain a key part of the program,” he said.