Indian Spices Market Report- January 2021

• Demand from the export market has reduced since the 2nd week of Nov ’20, while domestic demand is normal
• Stocks in cold storage have depleted quickly in the last 4 months. Current Guntur stock was at 14 lakh bags of 40Kg net. Total stock in trading centers is expected to be around 37 Lakh bags of 30-35Kg net, mostly low quality
• Chilli crop is at flowering and fruit ripening stage in major growing states of Andhra, Telangana & Karnataka. Harvesting of early sown crop has started
• Acreage has increased by 15 - 20% compared to last year in AP & Telangana and by 20 - 25% in Karnataka
• Virus infestation is increasing in areas and has damaged 10 - 15% of the crop in AP. A few areas were also affect-ed by Anthracnose disease, especially the first pick
• New crop arrivals have started coming into Byadagi and Guntur markets. Quality of the initial arrivals was mostly inferior. Major arrivals are expected to arrive in the 3rd week of February onwards. Productivity needs to be monitored considering the staggered sowings
• Chilli crop at Tamil Nadu is at flowering to fruit initiation stage and crop condition looks good

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

• Arrival pattern of new crop
• Pipeline stocks at consumption centers
• Demand from China and domestic market
• Virus infestation spread and weather conditions

• Quality stock arrivals across markets remain low. The majority of arrivals continue to have infestation issues
• In some growing areas across Maharashtra & Telangana, crop yield is expected to be lower than last year, mainly due to unseasonal rain. Some crop areas in Maharashtra also reported crop diseases
• Prices increased by 2 - 4% in the last couple of days on renewed buying interest
• Due to low yield expectations for 2021, a downtrend from the current price levels for near term is unlikely
• Export and domestic demand remain steady

• Downward price correction from the current price level is unlikely, which may be supported by arrival delays

• Good carry out stock this year compared to last 4 years
• Conventional cumin prices were down by 4 - 5% due to good progress in sowing compared to initial estimates
• EU pesticide compliant cumin availability is very much limited and prices continue to remain firm
• Overall acreage is marginally down vs last year
• Crop yields will depend on weather conditions in the next few weeks
• EU compliant & conventional prices should remain firm

• Carry out stock this year is less than the last 3 years
• Prices have been down by 3 - 4% during last the few weeks due to good progress in sowing
• Overall acreage is almost same as last year
• Coriander crop yield will depend on weather conditions during next few weeks
• Minor crop damage observed due to rainfall in some growing regions
• FAQ and premium grade prices are expected to be stable