Indian Spices Market Report- October 2020

• Market arrivals and sales have picked up since Aug’20
• Good demand from export & domestic markets with less availability of quality material caused a price correction
• Stocks in cold storage are depleting fast. Total stocks across trading centers are expected to be around 0.32 million MT, the majority belonging to farmers
• Chilli crop is at early vegetative stage in major growing states of Andhra, Telangana and Karnataka
• All major growing areas in India received normal to excess rainfall by early September, with replanting and gap filling taking place in damaged areas
• Heavy rain starting in the 2nd week of Oct’20 in major growing regions of Andhra & Telegana may damage the crop — extension of damage is yet to be finalized
• As per preliminary estimates, chilli acreage is expected to increase between 10-20% compared to normal considering the availability of water for irrigation
• Traditional KDL belt of Karnataka is estimated to increase by 25% and the crop is expected to start reaching markets by the end of Dec’20
• Madhya Pradesh crop is at fruit formation stage. The area has increased by 10-15% and the new dry crop is expected to start reaching markets by the end of Oct’20

An upward trend is expected in prices but that could change based on the weather conditions and the new crop arrival

• Demand from both export and domestic markets
• Quality stock availability
• Weather conditions

• The crop is healthy with good yield expectations due to better climatic conditions
• Rainfall in India has been favorable. Similar to chillis, major turmeric growing areas are experiencing heavy rains, which may lead to some crop damage
• No crop damage concerns have been reported
• Arrivals remain low compared to last month across major centers. Intermittent market closures due to the pandemic safety measures have also affected arrivals
• Infestation issues are comparatively higher compared to the last couple of years
• Export demand remains steady, but domestic demand seems dull, mainly due to sales realization delays

4-month-old turmeric crop in Sangli, Maharashtra

• Downward price correction is likely to provide quality stock buying support for requirements up to Dec’20

• Expect good carry out stock this year vs last few years
• Rainfall has been good in key growing regions
• Demand has been weak in the last few weeks
• Prices are stable for conventional grades of cumin
• EU pesticide compliant cumin availability is very limited
• Sowing intentions of farmers to be watched for possible switch to alternate crops

• Carry out stock expected to be lower compared to the last two years
• Some of the market yards were closed due to traders strike against farm bills and taxes
• Prices have been stable during last few weeks
• Rainfall has been good in key growing regions
• Sowing intentions of farmers to be watched for possible switch to alternate crops