Indian Spices Market Report - July 2021
Crop & Market Scenario
- Major markets reopened after lockdown, bringing good arrivals across markets
- Thailand, Malaysia, China and Bangladesh markets experienced reduced export and domestic demand
- Guntur’s cold store stock is expected to be around 0.24 million metric tons. Total stocks across trading centers are expected to be around 0.80 million metric tons
- Most of farmers’ non-cold store stock chilli is sold out
- The upcoming festival season is expected to increase domestic demand
- With the start of monsoon season, agricultural operations began across regions. Chilli sowing is expected to start soon
- Chilli growing regions received moderate rains, except in Karnataka
- Chilli acreage increased by at least 25% to 30% for 2021-22, indicating the potential for a bumper crop
Near Term View
- Price levels are expected to be steady in the short run
Major Varieties Price Trend - Guntur Market
Factors to Watch
- Demand from domestic and export markets
- Covid spread
- Monsoon progress
Crop & Market Scenario
- Arrivals improved after lockdown restrictions were relaxed across origin markets
- Prices have dipped slightly due to sluggish domestic demand. Average export demand remains the same
- Sowing activities are in full swing across most growing areas. In Maharashtra, Telangana and Karnataka, sowing is 85% complete and 30% complete in Tamil Nadu. In Andhra Pradesh, sowing has just begun. Sowing is likely to finish by the end July or early August
- Prices settled with news of better sowing
- Domestic demand is likely to improve by August as destination markets recover from the COVID-19 situation
Near Term View
- Prioritize covering the near term demand at current levels to cover dips in receiving quality supply
- Watch monsoon progress, sowing, and demand for domestic markets
Crop & Market Scenario
- Daily arrivals in the Unjha market yard were between 500-550 metric tons
- Prices remained stable due to a balance between weak domestic and export demand
- The supply situation improved as restrictions eased and the second wave of Covid infections decreased
- Domestic demand is expected to improve with easing restrictions
- The availability of EU-compliant cumin is very limited
- Conventional prices are expected to remain stable
- EU-compliant cumin prices are expected to remain firm
Coriander
Crop & Market Scenario
- The current crop output is similar to last year’s
- Prices remained stable due to weak domestic demand
- Domestic demand is expected to improve with easing COVID-19 restrictions
