Indian Spices Market Report- September 2020

• Market arrivals and sales have picked up since August, with relaxation in lockdown
• Good demand from both export and domestic markets, coupled with the tighter availability of quality materials have resulted in a price correction
• Stocks in cold storage are depleting fast. Total stocks across trading is expected to be around 1.44 Crore bags of 30-35 Kg net and most of it belongs to farmers
• Crop is at sowing to vegetative stage in major growing states of Andhra, Telangana, Karnataka and Tamil Nadu
• All major growing areas have received normal to excess rainfall in this season and heavy rains in the first fortnight. This has damaged 20 - 30% of chilli nurseries in some areas
• Crop is at 30 - 45 days after sowing and transplants have been delayed in many places due to continuous rains, followed by high temperatures during the day
• As per preliminary estimates, the chilli growing area is expected to go up between 10 to 20%
• Madhya Pradesh crop is at flowering to fruit formation stage. The area is up by 10 - 15% and is expected to enter markets starting at the end of October

Prices are expected to be firm and should correct depending on the availability of quality material

• Pipeline stocks at consuming centers
• Demand from export and domestic markets
• Weather conditions

• Turmeric sowing is nearly complete across origins
• The major growing regions have received good rainfall in the last couple of weeks, which is favorable for the standing crop
• Arrivals have improved across origins, especially in Marathwada markets
• The prices rallied up 3 - 4% during the second half of August. However, it has corrected down by 2%, due to lack of aggressive buying interest at higher price levels
• Climatic conditions until October and crop yield should be monitored

• Better to cover the near-term exposure at current levels or on any further dips in price levels for quality stock

• Daily arrivals are at 500 - 600MT in the Unjha market
• The key cumin growing regions are experiencing normal to excess rainfall
• Export and domestic demand were weak during the last few weeks
• Market is at multi-year low, so there is limited downside
• EU pesticide compliant cumin availability is limited
• Conventional prices are expected to remain stable

• Premium grade Indian coriander availability is limited
• Cumulative rainfall has been favorable in key growing regions except for a few districts, which are in deficit
• Sowing intentions of farmers and the potential switch from coriander to other competing crops should be watched next season
• Eastern European coriander prices have softened as the new crop harvest has started arriving in markets
• Indian coriander prices are expected to remain stable