The chilli crop has been harvested. CY22 acreage has increased by 25-30% compared to last year. However, production has decreased due to significantly lower yield because of thrips infestation. The quality of the overall crop is poor compared to normal standards. In the recent weeks, most arrivals to market yards were considered to be of average quality.
Farmers have used high doses of pesticides to control thrips which led to a sharp drop in the availability of pesticide residues (PR) compliant chili compared to previous years. Premiums for compliant chili crops have increased this year due to tightness in supply. Exports during Q1 of 2022 were lower compared to last year. The domestic demand was normal. The largest chili market yard in Guntur will be closed for summer holidays from the 16th of May to the 12th of June.
The turmeric crop has been harvested. While the CY22 acreage is better than last year, unseasonal rains led to plant diseases and a drop in yield. CY22 production is expected to be similar to last year. Carry in stocks were lower compared to last year leading to a lower supply total.
Arrivals have remained consistent across market yards with some
regions reporting poor quality compared to normal standards.
Exports during Q1 2022 were lower compared to LY. Domestic
demand was normal.
Cumin & Coriander
Cumin: Cumin crops have been harvested for this year. The acreage planted for CY22 is down by 25-30% due to the acreage switch to alternate profitable crops. The early sown crop is damaged because of blight resulting in lower yields.
Pesticide residues compliant (PR) crops make up a small percentage of the overall crop. Premiums have increased for pesticide residues compliant cumin due to an increased demand and tightness in the supply.
Farmers are reluctant to sell at lower price levels and are holding stocks in anticipation of better prices during the off-season. This is providing support to prices despite weak export demand.
Exports during Q1 2022 were lower compared to last year. The domestic demand is normal. The prices from current levels will be driven primarily by export demand.
Coriander: The crop has been harvested. CY22 of the acreage planted has decreased by 20-25% compared to last year. This is due to a switch to alternate profitable crops. CY22 production is expected to be lower compared to last year. The quality of the crop has increased compared to normal grades. Exports during Q1 2022 were lower compared to last year. The domestic demand is good compared to the previous year.