Indian Spices Market Report- November 2020

• Export and domestic demand have been good in the last month and off-take is higher than normal
• Stocks at cold stores depleted fast last month. Stocks at Guntur were at 0.10 Million MT. Total stock across trading centers is expected to be around 0.25 Million MT, the majority belonging to farmers
• Acreage is expected to increase between 10 - 20% in AP, Telangana and Bellary regions. The crop is at vegetative to flowering stage in major growing regions, while the early sown crop is at the fruit formation stage
• Crop growth has been impacted by the rain received in October. Damage is expected to be between 5 - 10%
• High color KDL and Dabbi prices at Byadagi market are firm, trading at INR 230 - 280/kg with very limited stock
• Benchmark S4 is trading at INR 145 - 150. High heat chilli from Teja (S17) is trading at INR 185 - 190/kg in Guntur
• KDL crop from traditional belts is expected to start from early December onwards. The crop is expected to be better than last year
• New crop arrivals from MP is inferior in quality, mostly due to rain and will likely be less than last year

Chilli crops with stunted vegetative growth

• Weather conditions, pests and diseases
• Crop performance and quality stock availability
• Demand for the next 2 to 3 months

Prices are expected to be firm in the short term and should soften by the end of December, onwards

• Overall standing crop remains healthy with better yield expectations for CY21. We will have better clarity by December
• Minor crop damage issues reported from Telangana and AP due to heavy rain across the growing regions, mainly in the low-lying fields
• Off-season arrivals have had more infestation issues compared to the last couple of years
• Arrivals were low in the first half of October with improvements last week, especially in Marathwada markets
• While export demand is steady, domestic demand is dull
• Medium-best polished cleaned graded MFT- Salem with min. 3% CC is currently trading @ INR 58 - 61/kg in origin

Crop at 130 days in Namakkal District, Tamil Nadu

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

• Good carry out stock is expected this year
• Prices moved up by 3 - 4% due to renewed demand from domestic and export markets
• EU pesticide compliant cumin availability is very limited and prices remain firm
• Acreage is expected to be lower compared to last year, as farmers switch to alternate crops for better returns
• Sowing is progressing well and should finish by December

• Prices have been stable for the last few weeks
• Acreage will likely be lower than the last couple years
• Planting has been progressing and will likely be completed by the end of the year
• Fair average quality grade prices are expected to be stable in a normal scenario but could move up in the event of a significant acreage switch to alternate crops
• Premium grade prices expected to remain firm