MUMBAI (Commoditiescontrol) - Weak Trend continued to persist in spices complex for third consecutive week this month. Red Chilli and Jeera were top loser commodity while Blcak Pepper and Coriander prices were recorded tad down.
BLACK PEPPER: prices eased by 0.96% at benchmark Kochi market during the week ended on Friday.
Pepper of overseas origin destined for Nepal was allegedly being smuggled into the North Indian markets on Friday, trade sources said.
They claimed that Sri Lankan pepper imported in January by Karnataka based dealers was being moved into the consuming centres across the country even without checking for pesticide residues.
According to reports harvesting has picked up in the high ranges and the Wayanad district of Kerala. The crop is going to less contrary to the earlier projections, market sources said.
Farmers groups, have reportedly alleged that there was lack of coordination between the concerned departments and, as a result, pepper released from the ICDs had not been checked for quality parameters.
Add to this the current Indian crop is unlikely to be at the projected higher levels given the thin rate of arrivals from several southern districts of Kerala.
Traders alleged that imports are taking place at much lower prices i.e., much blow the MIP of Rs.500 a kg but by paying the import duty at 8 per cent at the MIP rate.
Indian Pepper was traded this week was recorded tad up at 1,77 tonnes as compared with 1,62 tonnes last week.
Indian Pepper on the terminal market traded this week was recorded tad up at 79 tonnes as compared with 1,77 tonnes last week.
CORIANDER: prices remained more or less steady at benchmark Kota market of Rajasthan due to scattered buying and selling during the week ended on Friday.
Stockists and masala powder manufacturers are actively buying good quality coriander on Friday with a view that lower production this season will push prices higher in coming months, said a trader from Ramganj.
Arrivals are on lower side compared with last year, but likely to improve after Holi, he said.
Coriander imports during Apr-Nov 2017 was recorded lower by 45% at 20,011 metric tonnes versus 36,965 metric tonnes during same period in corresponding year, as per Commerce Ministry of India.
Coriander imports declined in 2017 as the domestic prices plunged around 35% due to higher output hence prices were lower as compared to prices of spice in rival countries.
Other hand, lower prices turned attractive for international buyers which led to increase in export by 20% during Apr-Nov 2017.
Export was recorded higher at 18,145 metric tonnes versus 15,009 metric tonnes during same period in 2016.
Further, Production of Coriander this year is pegged at 80 lakh bags (40kg each) due to lower sowing though the yield is expected to remain same as last year or decline upto maximum 10%.
Coriander prices are expected to trade in current price range or can decline during the peak arrival season i.e after Holi.
As per IMD forecast, thunderstorm accompanied with hailstorm likely at isolated places over Jammu Division, Himachal Pradesh, Uttarakhand, Punjab, Haryana, Chandigarh & Delhi, West Uttar Pradesh, Rajasthan, West Madhya Pradesh and Marathwada. For full report (Click Here).
Overall long term outlook for spice is positive due to lower output estimates and if any damage happen to standing crop in producing belts due to hailstorm will also support the price.
JEERA: prices plunged by 6.25% at benchmark Unjha market during the week ended on Friday amid higher production of estimates followed by new crop arrivals in large quantities.
Supplies at Unjha market on Friday was recorded at 22,000 bags (55kg each) against 16,500 bags during same day last year.
As per a veteran trader from Unjha, Supply is very good so far this season compared with last year mainly due to higher production estimate amid sharp rise in sowing. Arrival will increase further in the coming weeks and thus may add pressure on prices.
Participation of traders in trade were on the lower side on Friday as many of them have went to attend a seminar scheduled between February 23-24 related to spice market, he noted.
Federation of Indian Spices Stakeholders (FISS) has called a two days seminar, where they will release production estimate of Cumin seed and Coriander.
The harvest season has started and the arrivals in the market have increased from Gujarat and Rajasthan, two main producers of the spice.
According to farmer sources in Saurashtra, a disease ‘alternaria blight’ has surfaced in select pockets of Rajkot and Jamnagar districts.
Although, as per market sources, there is no remarkable impact of the climatic extremities on jeera crop. The crop will be better than last year, hence there is not likely to be any sharp rally in prices in short-term.
The 67% rise in prices last year encouraged farmers to sow more of the spice hence this year the spice is set to lose flavour as supplies are set to rise with output seen up 30%.
According to industry sources, "India cumin seed export this FY 2017-18 likely between 125,000-130,000 metric tonnes compared with 122,577.68 metric tonnes a year ago."
Export demand at present is slow as major buyers have hold their buying or doing need-based procurement due to expectations of correction amid higher production estimate.
India cumin seed production is likely above 75 lakh bags (55kg each) compared with 45-48 lakh bags a year ago, said traders.
On futures, The March futures of jeera at National Commodity and Derivatives Exchange (NCDEX) hovered around Rs 155 per kg on Tuesday.
“The futures have touched over 20 months low on expectations that the production in the new season will be higher by 25-30 per cent over last year.’’
.jpg) TURMERIC: prices declined by 2.86% at benchmark Nizamabad market during the week ended on Friday.
On the account of weak domestic and export demand of turmeric in major producing states have extended turmeric losses during last week.
New Turmeric supply in the spot market is improving gradually, but buyers are not in hurry to procure at current rates due to sluggishness persist on futures.
Demand is expected to remain steady until financial year end 2017-18 on March 31 as traders will be busy in doing in account related work, said market sources.
As per market sources, the begging stock this year is pegged around 22 lakh bags (70kg each).
Turmeric prices are expected to trade sideways to downward amid sufficient stock availability in major markets followed by entry of new crop in small quantities and subdued domestic demand.
However, the fundamentals support a firm market on the basis of reports that the production in Tamil Nadu, Andhra Pradesh and Telengana would be lower than last season.
RED CHILLI: Teja variety prices plunged around 7% at Guntur market during last week due to muted demand from international buyers against higher supplies.
Prices of other varieties traded mixed during the week as the prices were quoted as per the quality of the stock and moisture content.
According to traders, demand in red chilli is slow at present, however buyers are doing good buying in deluxe (premium) quality amid short supply.
As per market sources, Chilli cold storage ending stock in Guntur were reported higher this year due to higher production in 2017 – 18.
Acreage under chilli has fallen to 98,857 ha in 2017-18, down 19% from last year, Madhya Pradesh is the fourth largest producer of chilli.
Chilli production is pegged around 2-2.25 crore bags (40kg each) as compared with 3.75-4 crore bags in 2017-18, said a Mumbai based trader.
Chilli prices have declined this week and can further go down in coming days due to arrivals pressure though the prices will rise in long run amid lower production, he added.
Chilli outlook this year is positive due to lower production as farmers lost interest last year because of lower prices during sowing period.
Consumption of chilli is increasing substantially with the branded powder sales growing at a compound annual growth rate of 11% while the spices mix category is growing at a CAGR of 7%, according to a spices board report on the commodity.
(By Commoditiescontrol Bureau; +91-22-40015522)
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