Lentils

Product

The lentil (Lens Culinaris) is an edible pulse/bean.Lentils play an important role in livelihood, food, and nutritional security. They are low in fat, low in sodium, cholesterol free, high in protein, and are an excellent source of both soluble and insoluble fiber, complex carbohydrates, vitamins and minerals.
Lentil is a legume crop. It plays a very important role in improving soil fertility and for the sustainability of the farming system. The cropping pattern is either ‘relayed’ into paddy or ‘follow’ paddy harvest. The majority of farmers grow lentil for consumption while in the Terai region it is mainly grown for the domestic market and for export. Nepal’s exportable lentil production is concentrated in 10 districts of Terai, where approximately 80 per cent of the total national production is harvested annually.Lentil is considered a traditional crop of secondary importance, and less attention is paid by the farmers to improve the production, little priority has been given to research, extension, policy, and infrastructure development. The major constraints to increase lentil production at farm levels are the lack of improved seeds, production technologies, micro-nutrients, chemical fertilizers, insecticide/pesticide management, and micro-irrigation. Also constraining export growth are proper linkages with international buyers, compatible policies, information gaps, and quality standards and certification.

Global Trade Overview

World import characteristics:

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India, Turkey, Bangladesh, Egypt are some major importers of Lentils world wide.
 
List of importers for Lentils in 2012 
Product : 071340 Lentils dried, shelled, whether or not skinned or split
Importers Trade Indicators
Value imported in 2012 (USD thousand) Quantity imported in 2012 (Tons) Unit value (USD/unit) Annual growth in value between 2008-2012 (%) Annual growth in quantity between 2008-2012 (%) Annual growth in value between 2011-2012 (%)
World 1409208 1954726 721 3 10 -9
India 262548 441264 595 42 55 286
Turkey 106124 168806 629 -12 5 -48
Bangladesh 104879 171418 612 16 17 186
Egypt 77686 78416 991 1 6 -22
Sri Lanka 69673 113999 611 -8 6 -40
Spain 68041 74631 912 9 10 4
United Arab Emirates 55631 93852 593 -1 1 -54
Colombia 45897 59890 766 11 3 -13
Pakistan 38641 68568 564 4 9 -41
Iraq 38616 49722 777 51 82 -22
Sources: ITC calculations based on UN COMTRADE statistics
 
The world trained shows there is 10% and 3% growth during the last five years (2008 to 2012) in the quantity and the value of Lentils respectively. During this period major Importers are India, Turkey, Bangladesh and Egypt. In the last year (2011-12) the value in the world market has declined by 9%. In India, Bangladesh and Spain the value has been increasing whereas Turkey, Egypt and Sri Lanka are paying less than before.
Egypt ($991), Spain ($912), Iraq ($777) and Colombia ($766) are still paying higher than the world average ($721). There are 182 countries importing Lentils in the world.
 

World Export characteristics:

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Canada, Turkey, Australia an USA are major exporter of Lentils
List of exporters for the Lentils in 2012 
Product : 071340 Lentils dried, shelled, whether or not skinned or split
Exporters Trade Indicators
Value exported in 2012 (USD thousand) Quantity exported in 2012 (Tons) Unit value (USD/unit) Annual growth in value between 2008-2012 (%) Annual growth in quantity between 2008-2012 (%) Annual growth in value between 2011-2012 (%) Share in world exports (%)
World 1311617 2006236 654 1 3 -13 100
Canada 710666 1125222 632 -3 -4 -19 54.2
Australia 206667 377880 547 39 59 11 15.8
Turkey 161332 197413 817 11 29 -20 12.3
United States of America 120510 181441 664 0 0 5 9.2
China 11270 14026 804 0 -3 -37 0.9
Russian Federation 9055 19247 470 65 78 67 0.7
Egypt 8371 8680 964 -10 -13 8 0.6
Sri Lanka 7495 7541 994 -18 -6 -3 0.6
Syrian Arab Republic 6803 7746 878 -2 -10 104 0.5
Belgium 6385 6538 977 -3 -4 -7 0.5
Nepal 2415 3206 753 -58   941 0.2
 Sources: ITC calculations based on UN COMTRADE statistics
 
It has been observed that the world export market is growing at the speed of 3% per year during 2008-2012, though the growth of the value is reported only 1% during this period. In the last year 2011-2012 there is a decline in the value by 13%. Biggest losers in terms of value are China, Turkey and Canada. In this period the quantity exported by Nepal has been decreased significantly though the value has been increased. Nepal is getting about $753 per ton; this is higher than the world average ($654).
Export seems to be highly concentrated with Canada having 54.2% market share in the world. Other major players in the export market are Australia with 15.8% and Turkey with 12.3%. Nepal's share in the world export is about 0.2%.
 

Nepal's Export Performance:

Nepal's export is significantly decreasing by years.
Nepalese Export
List of Importing Markets for Lentils Exported by Nepal 
Product : 071340 Lentils dried, shelled, whether or not skinned or split
Importers 2009 2010 2011
Exported quantity, Tons Exported quantity, Tons Exported quantity, Tons
World 56768 45734 22533
Bangladesh 34801 45132 22001
Singapore 1619 293 325
India 1130 169 182
Bahrain 66 - 25
Lebanon 154 - -
United Arab Emirates 3769 - -
Australia 520 - -
Sri Lanka 1152 - -
France 185 - -
Germany 120 - -
Italy 701 - -
Turkey 4155 - -
Egypt 2332 - -
United Kingdom 382 - -
United States of America 1603 21 -
 
Sources: ITC calculations based on UN COMTRADE statistics.

 

altOur major trade partner is Bangladesh in all the years with more than 95% quantity. Singapore and India are other major trade partners. Nepal used to export its Lentils to UAE, Turkey, Egypt, United Kingdom, Italy, Germany, USA etc.

 

 

 

 

Attractive Market For Nepalese Lentils:

 
Target Country  World Import Market Share (%)  Unit Value  Annual Growth Rate in value Rank Average Market Dynamism Doing Business Index Country Risk for Doing Business Business Environment Average Market Scan Rank
S.N. World 100 721 3 - - - - -
1 India 18.6 595 42 11.6 132 A4 3.67 8.422222
2 Singapore 0.4 1098 18 8.6 1 A1 7.67 8.255556
3 USA 2.1 863 3 8.2 4 A2 6.00 7.9
4 Germany 1.8 965 2 7.6 20 A2 6.33 7.644444
5 Spain 4.8 912 9 10.8 44 B 4.67 7.322222
6 Peru 2.4 879 17  9.8 43 A4 4.67 7.322222
7 Egypt 5.5 991 1 10.8 104 C 3.00 7.1
8 Turkey 7.5 629 -12 8 68 A4 4.67 6.888889
9 Bangladesh 7.4 621    16 10.6 129 C 3.33 6.644444
10 Colombia 3.3 766 11 9.4   45 A4 4.00 6.133333

According to different index as Doing Business (World Bank), Country risk (COFACE) on doing business, Distance, Diaspora (International Organization for Migration), Applied tariff (MAcMAp) etc Market Scan Index shows India, Singapore, USA, Germany, Spain could be attractive market for Nepalese Lentils. Bangladesh is our largest trade partner and is listed in 9th position as its doing business index, country risk is very high and Bangladesh is applying a MFN Tariff of 5% to Nepalese Lentils.

Export Requirement

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