Monthly Prices Movement

  • Spices complex showed a mixed trend at the various markets of India during the month. Prices zigzagged with a lot of uncertainties. However, Jeera prices remained firm throughout the month due to good physical and export demand.

  • Turmeric showed a mixed trend on increased sowing and favorable weather. Major fall was not seen as there was good demand due to festival season.

  • Cardamom prices were firm on low arrivals and good demand from buyers. The festival season demand is expected to keep prices firm in the near term.

Ground Report

  • India Cumin Seed exports during the first five months of 2016 (Apr-Aug) was about 58,000 tons due to increased demand from China, US and gulf countries.

  • India's exports during the financial year 2015-16 is likely to rise above 0.1 million tons as pipeline in consuming countries were mostly dry and bleak prospects of export from Turkey, Syria and Iran due to unrest and lower production.

  • Red Chilli sowing in Andhra Pradesh as on September 28 stood at 136,000 hectares while in Telangana Chilli cultivation reached at 58,000 hectares.

  • India Cardamom production in 2016-17 is expected to drop due to the poor production and plant loss in the major producing state of Kerala. Plant loss is estimated to be around 5-10 percent, while crop loss is estimated to be around 25 per cent.

  • India’s total Cardamom production area for FY16 was stagnated for third year in a row at 69,970 hectares production of Cardamom was 22,000 tons, compared with 18,000 tons in 2014-15.

  • Pepper production in India is expected to increase by about 10 percent in this financial year, according to the Spices board. Total acreage of Pepper increased to 128870 hectares as compared to 123900 hectares last year.

  • India's Pepper production in 2015-16, was 48,500 tons, compared with 70,000 tons in 2014-15. Yield dropped to 376 kg per hectares from 564.97 kg per hectares.

  • Between April and June, 4,300 tons of Pepper was exported by India for Rs 268.30 crore and unit value was Rs 623 per kg.

  • In the eight months ended August, India's Pepper import from Vietnam rose 36% on year to 9,292 tonnes. Vietnam is the world's largest producer of Pepper and the country is currently the cheapest source for the spice.

Policies

  • India's Pepper imports from Vietnam rose sharply in August as domestic prices of the spice are currently more than $1,500 per tonne higher than those of Vietnam origin.

  • Vietnam has reportedly brought down its Pepper prices to $7,500 a tonne for Jan/Feb/Mar shipments while Sri Lanka was offering at $9,000 a tonne.

  • Indian importers, who have obtained license to import 2,500 tonnes of Pepper from Sri Lanka, are bringing the material duty free. This Pepper is also available in the major North Indian markets.

  • The recent export data released by Spices Board revealed that India has shipped 41,000 metric tons of Cumin Seed during April-June, up 55 percent from 26,529 metric tons previous year.

Global

  • In 2016- 17, Jeera output is seen falling in other major producers Syria and Turkey to 10,000 ton and 12,000 ton respectively from 15,000 ton and 17,000 ton in 2015-16.

  • India is likely to export 40,000-45,000 tonnes more Jeera in coming months as production is low in Syria and Turkey.

  • Vietnam's Pepper exports to India rose 150% year on year to 520 tonnes in August from 208 tonnes last year.

Outlook

  • During the next three months, the movement of Jeera prices will depend solely on export and domestic demand. The fresh crop will start arriving in the market only after March. Domestic demand as well as export demand is supporting the prices.

  • Turmeric prices may decline going forward due to increased sowing and favorable weather. However, festival demand will prevent any major fall.

  • Festival demand and decreased arrivals are helping the Cardamom markets sentiments and prices likely to be firm in the days to come.

  • Sellers are reluctant to sell their Red Chilli produce at the lower level as they anticipate some revival in demand ahead of festival.

  • Coriander prices is expected to go down further with increased arrivals as farmers are likely to liquidate their stocks for financial requirements ahead of festivals.

image