Daily Current Affairs : 22-September-2023

In recent news, the ongoing standoff in India-Canada ties has sent ripples through the market, affecting the availability and prices of Masur, also known as red lentils. This essay delves into the dynamics of this issue, shedding light on its global and domestic aspects, including production, consumption, and trade.

Global Production of Red Lentils
  • Canada’s Dominance: Canada stands as the primary source of red lentils for India, annually contributing an impressive 4-5 lakh tonnes to the Indian market. This significant import volume underscores the importance of India-Canada trade relations in the food sector.
Domestic Production in India
  • Rabi Crop Status: Red lentils, or Masur, play a pivotal role in India’s agriculture as the second most commonly grown rabi crop, which are winter crops. Uttar Pradesh and Madhya Pradesh collectively account for approximately 70 percent of domestic red lentil production. These states have become the backbone of India’s self-sufficiency in Masur.
Consumption Patterns in India
  • Regional Consumers: Red lentils find favor in the households of West Bengal, Bihar, and several northeastern states, including Tripura, Nagaland, Assam, and Manipur. These regions have developed a strong appetite for Masur, making it a dietary staple.
Domestic Annual Consumption
  • Hungry for Masur: The annual consumption of Masur in India is estimated to be an astonishing 18-20 lakh tonnes. This high demand reflects the integral role that red lentils play in Indian cuisine and the diets of millions of people.
Impact of India-Canada Standoff

The ongoing tension between India and Canada has had notable repercussions in the red lentil market.

  • Supply Chain Disruptions: The strained relations have led to disruptions in the supply chain of red lentils from Canada to India. Delays in shipments and uncertainty in trade agreements have contributed to a reduced flow of Masur into the Indian market.
  • Price Fluctuations: With the limited supply of red lentils, prices have witnessed significant fluctuations. The basic economic principle of supply and demand has caused prices to surge due to scarcity, burdening consumers and traders alike.
  • Exploring Alternatives: In response to the uncertainty surrounding Canadian imports, India has started exploring alternative sources of red lentils. This quest for diversification may lead to new trade partnerships and affect the global red lentil market.
Challenges and Opportunities

While the India-Canada standoff presents challenges, it also presents opportunities for both nations.

  • Diversification: India’s exploration of new sources for red lentils can strengthen its food security and reduce dependence on a single supplier.
  • Negotiations and Diplomacy: Diplomatic negotiations between India and Canada could lead to improved trade relations, benefiting not only the red lentil market but also other sectors.

Important Points:

Impact of India-Canada Standoff on Red Lentils:

  • Ongoing standoff affects red lentil availability and prices in India.
  • Canada is the largest source of red lentils for India, contributing 4-5 lakh tonnes annually.
  • Red lentils are the second most commonly grown rabi crop in India, mainly in Uttar Pradesh and Madhya Pradesh.
  • Key consumer states include West Bengal, Bihar, Tripura, Nagaland, Assam, and Manipur.
  • Annual consumption of red lentils in India is estimated at 18-20 lakh tonnes.
  • Supply chain disruptions and delays in shipments from Canada due to strained relations.
  • Price fluctuations due to supply scarcity have burdened consumers and traders.
  • India explores alternative sources for red lentils to diversify supply.
  • Diplomatic negotiations between India and Canada could lead to improved trade relations.
  • Opportunities for both nations in reshaping the red lentil market through resolution of trade tensions.
Why In News

The ongoing standoff in India-Canada ties has had a tangible impact on the availability and prices of Masur (red lentils), with traders witnessing fluctuations that are causing concern within the agricultural sector. This trade dispute is not only affecting the Masur market but also casting a shadow over broader economic relations between the two countries.

MCQs about Red Lentil Market

  1. Which two Indian states contribute to approximately 70 percent of the domestic production of red lentils (Masur)?
    A. Punjab and Haryana
    B. West Bengal and Bihar
    C. Uttar Pradesh and Madhya Pradesh
    D. Karnataka and Andhra Pradesh
    Correct Answer: C. Uttar Pradesh and Madhya Pradesh
    Explanation: These two states collectively account for around 70 percent of domestic red lentil production in India.
  2. How does India plan to address the uncertainty in red lentil supply caused by the India-Canada standoff?
    A. By reducing red lentil consumption in households
    B. By exploring alternative sources for red lentils
    C. By increasing domestic production of red lentils
    D. By imposing tariffs on red lentil imports
    Correct Answer: B. By exploring alternative sources for red lentils
    Explanation: The India is seeking alternatives and diversification in its sources for red lentils to address the supply chain disruptions caused by the standoff.
  3. What is the key role of Canada in the Indian red lentil market?
    A. Primary consumer of Indian red lentils
    B. Major importer of Indian red lentils
    C. Primary producer of Indian red lentils
    D. Primary competitor of Indian red lentil exports
    Correct Answer: B. Major importer of Indian red lentils
    Explanation: Canada plays a crucial role as the largest source of red lentils for India, annually importing a significant quantity of red lentils into the Indian market.

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