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Indian Spices Market Report- December 2020

Chilli


Crop & Market Scenario

  • 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

Near Term View

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

Major Varieties Price Trend - Guntur Market

Factors to Watch

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

Turmeric


Crop & Market Scenario

  • 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

Near Term View

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

Cumin


Crop & Market Scenario

  • 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

Coriander


Crop & Market Scenario

  • 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

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