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Indian Spices Market Report - October 2021

Chilli


Crop & Market Scenario

  • Arrivals are good across major markets with normal demand
  • There’s upward pressure on price, due to increased demand from Export markets especially for S17 and S4
  • Domestic demand is expected to improve with the coming festival season
    Most regions received moderate to heavy rains in the second half of September. Agricultural operations are on schedule, with 90% sowings completed to date in Andhra & Telangana
  • Heavy rains damaged 5% of the crop, likely requiring replanting
  • Farmers strategically delayed sowings in irrigated areas of Karnataka by 20-25 days to avoid unseasonal rains during the fruit initiation stage
  • Traditional belt of Karnataka is at the peak vegetative to flowering stage and new arrivals are expected to start the last week of November. Overall crop condition is good in Karnataka
  • As per our estimates, total chilli acreage has increased by 25-30%. The increase is mostly driven by the acreage for hybrid varieties

Near Term View

  • Prices are expected to further soften in the medium term

Major Varieties Price Trend - Guntur Market

Factors to Watch

  • Demand from domestic and export markets
  • Weather conditions
  • Pest and disease incidence

Turmeric


Crop & Market Scenario

  • As per our estimates, sowing acreage is expected to be 10-15% higher compared to last year
  • Most of the major growing areas experienced heavy rainfall during the second half of September. Low lying growing regions had water logging issues, which may impact the standing crop yield. We will understand the extent of the damage in the next few weeks
  • Daily arrival volumes remain in sync with average arrivals. Some farmer’s lots have insect infestation issues Prices remain range-bound against slow demand from
    export and domestic segments
  • Domestic demand is likely to improve as, 1) destination markets get back to normal and, 2) as current price remains supported by upcoming festival demand

Near Term View

  • Advise buying at current levels for the near-term exposures or on dips for ensuring quality stock

Cumin


Crop & Market Scenario

  • Key growing regions received adequate rainfall during September which covered the deficit created during August. This improved overall water availability for next
    year’s crop
  • Prices remained stable during the last few weeks. Export demand has remained weak
  • Domestic demand is expected to pick up with the upcoming festival season
  • There are concerns farmers may switch acreage to more profitable crops for next season

Coriander


Crop & Market Scenario

  • Key growing regions received good rainfall during the monsoon season
  • Prices remained stable during the last few weeks 
  • Domestic demand is expected to pick up with the upcoming festival season 
  • There are concerns farmers may switch acreage to more profitable crops for next season

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