Indian Spices Market Report - August 2021
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
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
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
Crop & Market Scenario
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Rain caused slowdowns for arrivals in major market yards
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Prices increased by 8-10% during the last few weeks
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There are concerns farmers may switch acreage to more profitable crops for next season
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Domestic demand expected to pick up with upcoming festival season and easing of restrictions
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Near Term: Prices are expected to remain firm
