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Indian Spices Market Report - August 2021

Chilli


Crop & Market Scenario

  • Arrivals are good across major markets
  • Prices recently softened due to decreased demand from both domestic and export markets
  • Other than the slight increase in demand from Kerala due to the Onam festival, demand is below normal
  • Stock at Guntur cold stores is expected around 0.23 million MT. Total stocks across trading centers are expected to be around 0.76 million MT
  • Domestic demand is expected to improve with the coming festival season
  • Most regions received acceptable rains in the first half of August. Operations are on shedule, with sowings expected to finish on time in Andhra and Telangana
  • High temperatures during the last half of July damaged 5-10% of sown plants, likely requiring replanting
  • Farmers strategically delayed sowings in irrigated areas of Karnataka by 20-25 days to avoid unseasonal rains during the fruit initiation stage. Sowing is 70% complete
  • Preliminary estimates show chilli acreage is expected to increase by 25-30%. Acreage for hybrid varieties will likely also increase

Near Term View

  • Price are expected to soften in the short to medium term

Major Varieties Price Trend - Guntur Market

Factors to Watch

  • Demand from domestic and export markets
  • Weather conditions

Turmeric


Crop & Market Scenario

  • Turmeric sowing is almost finished across major origins except in some areas of Andhra Pradesh and Tamil Nadu
  • As per the primary reports, sowing acreage is expected to improve by 10-15% compared to last year
  • Most of the major growing areas experienced heavy rainfall during the middle of July. However, no major crop damage has been seen or reported
  • Daily arrival volumes slowed compared to last month, with infestation and related quality issues common for off-seasonal farmer lots across origins
  • Prices remain range bound against steady demand from export and domestic segments
  • Domestic demand is likely to improve as, 1) destination markets get back to normal and, 2) as the current price remains supported by upcoming festival demand

Near Term View

  • Advise buying at current levels for the near to medium term exposures or on dips for ensuring quality stock
  • Watch standing crop condition, demand for domestic markets and electronic counter activites

Cumin


Crop & Market Scenario

  • Daily arrivals in the Unjha market yard were in the range of 300-400 MT
  • Prices increased by 3-4% during the last few weeks
  • There are concerns that deficient rainfall and water availability may cause issues for next year’s crop
  • Export demand has remained weak
  • Availability of EU-compliant cumin is limited
  • Domestic demand is expected to pick up with upcoming festival season and easing of restrictions
  • Near Term: Prices are expected to remain firm

Coriander


Crop & Market Scenario

  • Rain caused slowdowns for arrivals in major market yards

  • Prices increased by 8-10% during the last few weeks

  • There are concerns farmers may switch acreage to more profitable crops for next season

  • Domestic demand expected to pick up with upcoming festival season and easing of restrictions

  • Near Term: Prices are expected to remain firm

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