Indian Spices Market Report- July 2020

• Harvest is now complete and a majority of the stock has been moved to cold storages
• Guntur market re-opened on June 8th after lockdown
• Total production is estimated to be approx. 25% better than last year, with low carry forward stock
• Stocks at Guntur cold storage have increased by 30% over last year, with major stock belonging to growers
• Demand is normal from both domestic and export markets and prices are firm for best qualities
• SW monsoon has entered on time and growing regions are getting good showers
• Land preparation activities have started across areas in Andhra, Telangana and Karnataka regions
• The overall chili cropping area is expected to increase by 20% next season
• Madhya Pradesh is expected to increase by 15% more than last year. The crop is at the vegetative stage
• Sowings at Maharashtra are happening now and are expected to increase by 10-15% compared to last year

Prices are likely to be stable to weak

• Domestic and export demand
• Quality stock availability at coldstores
• Chinese demand

• Despite a delay caused by the covid-19 lockdown measures, harvest is now complete
• Major markets opened in the 1st week of June
• Arrivals increased across major markets
• Prices were supported at lower levels due to renewed buying interest from both export & domestic segments
• Prices moved up by almost 7 - 8% in the last couple days
• Farmers are not showing much interest in releasing their stock at lower price levels
• SW Monsoon has entered on time across growing regions
• Sowing started at the end of May in Maharashtra and Telangana. It is about half way complete

• Prices are supported at the current levels and are likely to continue

• Production is up compared to last year
• Market yards have started functioning and auctions are conducted on alternate days in key markets
• Daily arrivals have been in the 2,000 - 2,500MT range and production is up compared to last year
• Conventional cumin prices have been range bound in the last few weeks
• Processing activities and port operations have picked up pace with the easing of lockdown restrictions across key origins

• While carry in stocks are lower compared to last year, production is up
• The overall supply is marginally down vs last year
• Major market yards have started functioning and daily arrivals have been around 400 - 500MT
• Prices were stable during the last few weeks due to good arrivals and weak domestic demand
• Processing activities have picked up pace due to easing of lockdown restrictions across key origins