Last Updated : 09 October 2009 at 10:25 IST

Get ready to pay more for your masalas

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MUMBAI (Commodity Online): Except Jeera all spices across the country is going to touch the roof, if the arrivals at spot markets and field outlook are taken into account.

Chilli, Pepper and Turmeric is affected by adverse weather while the only spice that could see stability in price is Jeera, a commodity that is found more in Gujarat, where the weather has been favorable so far.

Even the Futures markets were bullish on these spices on an imminent short supply for short term. Long term investors continue to hold their positions expecting good returns.

Chilli at NCDEX Oct contract closed at 5450, a rise of Rs 50 compared to the opening same day and this morning it opened positive at Rs 5470.

The estimation about the damage is yet to be done but trade sources are estimating the loss to the tune of 5 to 10% for Chilli. This year the crop has been bad in Bangladesh and hence this neighbor has been actively buying from India according to research by Aum Commodities.

Jeera Oct contract closed at 11326, down of 75 Rs compared to the opening same day and this morning it opened negative at 11251

Turmeric at NCDEX Oct contract closed at 7873, a rise of 94 Rs compared to the opening same day and this morning it opened negative at 7858

Turmeric has come in for imposition of special margin on long positions from NCDEX as its prices have almost doubled.

With the revision of special margin required for taking long position in Turmeric futures at NCDEX, participation is expected to increase. Tight supply situation is still prevailing in the physical market due to lower inventory levels.

Traders are of the firm belief that turmeric is overbought and sooner a correction is expected. The correction this morning could be an indicator to this trend.

Households in India could be in for shock as the spice growing areas have been inundated in flood devastation. In the next six months, they may have to spill out that extra bucks for the damage that the farmers have suffered at the hands of nature.