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Indian Spices Market Report- October 2019

Chilies


Crop & Market Scenario

  • Prices across markets have shown a mixed trend from mid September to October with sluggish demand
  • Quality stock availability is comparatively low. The arrival of new Chinese crops has also impacted the demand
  • Guntur cold storage stock availability has come down to around 56,999 MT. Total stock in Andhra, Telangana and Karnataka is around 130 K MT
  • Major chili regions of AP Telangana and Karnataka received good rainfall, which has helped fill the reservoirs
  • The main harvest is expected to be delayed by 25 days
  • Continuous rainfall has damaged the crop in some pockets of MP and Karnataka
  • MP harvest arrivals are expected in October and should be better than the previous year
  • Sowing in Tamil Nadu has started and the preliminary estimates shows an increase in acreage

Crop at early vegetative stage in major areas

Near Term View

  • Prices are likely to remain firm, especially for premium varieties for the next month considering the festive demand

Best Quality Price Levels

Factors to Watch

  • Weather and climate conditions during crop period
  • Stock availability at consumer centers
  • Demand from APAC and domestic front

Turmeric


Crop & Market Scenario

  • Arrivals are gradually coming down compared to previous months across markets and sowing activities are almost complete across major origins
  • Most growing regions are receiving continuous rainfall
  • Major producing states like Maharashtra and Telangana recorded better sowing this year but AP, Tamil Nadu and Karnataka acreage is comparatively low vs. last year
  • Standing crop remains healthy to date and the yield is expected to be good. Prices corrected down almost 3-4%
  • Domestic demand remains sluggish, mainly due to better c/f stock, favorable crop situations and bearish activities in electronic platform
  • MFT polished, 3% CC, cleaned, graded medium-best quality is currently trading at INR.67-70/KG price range at origin

Near Term View 

  • Prices are likely to be range-bound for near term
  • Can cover near-medium term exposure at current levels or any dips for quality stock

Factors to Watch

  • Mainly festival related demand in October
  • Overall financial condition and stock activity
  • Climatic conditions across growing regions from Oct. - Nov.
  • Electronic counter activities

90-100 days old Tumeric field

Cumin


Crop & Market Scenario

  • Daily average arrivals during September in Unjha were approximately 350MT vs 250MT in the same period last year
  • Conventional quality prices softened by 3-4% last month due to weak demand. YTD exports have been nearly 10% lower compared to the same period last year
  • EU pesticide compliant quality prices remained firm due to less availability, caused by spraying of pesticides
  • Liquidation of conventional quality stock occurred due to expectation of enough carry out stock. Good prospects for new crops as a result of rainfall in key growing regions

Coriander


Crop & Market Scenario

  • Average daily arrivals in September were approximately 150MT at major markets, the same as last year
  • Prices softened by 3-4% last month due to weak demand
  • Key growing regions received good rainfall, which resulted in increased soil moisture levels
  • Sowing is likely to start by the end of the October or the first week of November
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