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Indian Spices Market Report- October 2018

Chilies


Crop & Market Scenario:

  • Sowing and transplantation has been completed
  • 10-20% increase likely without any major pest attacks or diseases.
  • MP crop is likely to be the same as last year.
  • Karnataka crop looks good in irrigated areas and rainfed traditional (KDL) areas.
  • Chili prices across markets have shown a weak tendency despite expected increase in acreage and water availability at major reservoirs.
  • Export demand has picked up from China, Bangladesh, Sri Lanka & Indonesia. However, domestic demand remains sluggish.

Near Term View

  • Prices of Best grades are expected to be range-bound and Medium Best & Medium are expected to soften in the near term.

Tumeric


Crop & Market Scenario:

  • Sowing has been completed across major turmeric origins.
  • AP and Telangana sowing is marginally better compared to last year. TN and Maharashtra sowing and crop conditions signal a ~10-15% crop increase per initial estimates.
  • Almost all growing regions have good rainfall, which is likely to continue, giving better prospects to the standing crop.
  • Low quality inferior stock is being sold at discounted price levels. However, quality stock demand has improved this month as a result of renewed inquiries and festival demand.
  • Domestic and export demand remains sluggish, mainly on liquidity issues, which are slowly picking up.
  • Prices were corrected down from last month.

Near Term View

  • Prices are likely to be range-bound for the next 3 months on the basis of standing crop progress as well as C/F stock liquidation trend.

Cumin


Crop & Market Scenario:

  • Daily average arrivals for the month of Sept were 250 MT in Unjha. Prices were range bound during Sept.
  • Markets were mostly stable during the month due to lesser export demand and sufficient arrivals.

Factors to Watch:

  • Export demand during balance year and domestic festive demand in October
  • INR depreciation influencing export parity.
  • Sowing for next crop, weather conditions.

Coriander


Crop & Market Scenario:

  • Coriander prices softened in Sept on account of good arrivals and traders liquidating old crop and inferior quality stocks.
  • Decreased availability of imported coriander led to a demand switch to good quality domestic grades.
  • However, huge carry in stocks still has an impact on the broader market movement.

Near Term View

  • Prices are likely to remain stable to marginally bearish in the next 2 weeks on account of good arrivals.

Black Pepper


Crop & Market Scenario:

  • Indian black pepper is trading by its own domestic demand supply equation, setting aside the huge disparity with other origins like Vietnam, Brazil & Indonesian price parities.
  • Prices remain steady to better on crop damage reports from Kerala & South Karnataka as well as on renewed buying interest from stockists.
  • Incessant rains, strong winds and landslides in August have badly affected pepper vines.
  • The overall crop damage and yield loss is expected to be 20-25% higher compared to last year.

Near Term View

  • Prices are likely to trade steadily in the near term. Any further upward price trend from these levels will likely be capped by new selling interest.
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