Indian Spices Market Report- December 2020

• Domestic and export market demand has decreased since Nov. and festive demand is less than anticipated
• Crop is at peak vegetative to flowering and fruit initiation stage in major growing states of Andhra, Telangana and Karnataka. Staggered planting and a delay in the crop can be seen across the region
• Acreage is expected to increase by 15-20% compared to last year in AP & Telangana and by 20-25% in Karnataka
• New arrivals have reached Byadagi and Guntur markets. Although the quality has been mostly inferior
• Major arrivals are expected starting the 3rd week of Feb onwards. Productivity needs to be monitored because of the staggered sowings
• Pests and diseases are under control. However, a virus infestation has been spotted in few areas. So we will need to watch the spread in the coming months
• Chilli in Tamil Nadu is at the vegetative stage. Planting was delayed in rainfed areas by more than 20 days
• MP and Maharashtra are having another disappointing year. Production is going to be lower than 20% of our preliminary estimate

Prices are expected to soften in the short term, considering the new crop arrivals and the stock levels at cold stores

• Pipeline stocks at consuming centers
• Quality stock availability at cold stores
• Weather conditions and labor availability during harvest

• Overall standing crop remains healthy to date, with better yield expectations
• Off-season quality stock arrivals across markets remain low. A major portion of arrivals have infestation issues
• Due to the infestation, we could see some steady demand for quality stock until the new crop arrives
• Possibilities of value buying at lower levels caused by record low prices in the last 5 years, which will likely give some support during further lows
• Export demand is steady, while domestic has been dull
• Crop yield and climatic conditions should be monitored from Dec ‘20 to Jan ’21

Crop at 160+ days in the Satyamangalam Erode District of Tamil Nadu

• Downward price correction from the current price level is likely to provide buying support for quality stock

• Expect good carry out stock this year vs. last few years
• Prices have been stable in the last few weeks
• EU pesticide compliant cumin availability is very limited and prices have remained firm
• Acreage switch observed in some growing regions in Gujarat to alternate crops. Overall acreage expected to decrease marginally compared to last year
• Sowing is progressing and is expected to be done in Dec

• Planting is progressing favorably across growing regions and should be finished by the end of the year
• There has been weak domestic demand and an increase in acreage in one of the key growing regions, Gujarat, compared to last year. Prices are down 4-5% as a result
• Fair Average Quality (FAQ) grade prices are expected to be stable
• Premium grade prices expected to remain firm

Coriander crop one month into cultiavtion