MUMBAI (Commoditiescontrol) -
BLACK PEPPER: Spot Pepper traded firm during the week ended on Friday as sellers withdrawal support, claimed market sources.
As the growers stayed away so far during the week showing no interest to sell below the MIP of Rs.500 a kg, the arrivals were very thin at the terminal market at this peak harvesting time of the season.
In the past at this time of the season the arrivals at the terminal market used to be above 60 tonnes a day, trade sources claimed. Whereas, it is currently below 15 tonnes, they said.
The squeeze in supply has pushed up the prices by Rs.1,000/100kg a quintal during the past five days of the week.
The expected fall in total production during the current season is also prompting the growers to hold back their produce, they added.
High range growers were reportedly not ready to sell their pepper at the prevailing low prices on Thursday.
At the same time, there are reportedly investors who are showing interest to buy high bulk density pepper as an investment instead of depositing in banks after the bank frauds.
Farmers alleged that the exporters were interested only in imported cheap material for value addition and re-export.
Since they were not supporting the Indian farmers all the concessions given to them should be withdrawn, they demanded. Instead, such incentives should be extended to those Indian exporters who ship out indigenous produce as it helps our farmers.
Contrary to the projections of over 70,000 tonnes of output during the current season, the actual production is estimated at somewhere between 55,000 - 60,000 tonnes, some in the trade claimed.
On the terminal market pepper trade was recorded lower at 52 tonnes as compared with 61 tonnes last week.
CORIANDER: Spot Coriander prices moved up by 1.20% at Rs.5,469/100kg at benchmark Kota market during the week ended on Friday.
The prices of spice were recorded higher as good demand from overseas and domestic buyers witnessed to procure good quality new crop to meet their commitments, said market sources.
Coriander prices were traded lower by 17% as compared to prices during same period a year ago which attracted overseas buyers, they added.
Coriander prices during the last couple of years were under great pressure due to decent production, higher imports and decreased market share in the international market,
Although this might not be the case this marketing year MY 2018-19 (Feb-Jan) due to estimate of sharp drop in production and prospects of some better export amid lower price.
India’s coriander production this season MY 2018-19 is expected to drop 44.57% at 2.4 lakh tonnes year-on-year due to decreased sowing as farmers have shifted to other remunerative crops like Chana, Cumin, Garlic, etc.
The supply-demand number are well balanced thanks to higher opening stocks, but lower crop this season with expected rise in export likely to push down MY 2018-19 ending stocks to multi-year low level.
Furthermore, Coriander prices may trade in current price range to lower range due to supply pressure and ample availability against subdued domestic demand although the downside is limited due to lower production estimates.
JEERA: Spot Jeera prices edged lower by 3.98% at Rs.16,153/100kg at the benchmark Unjha market during the week ended on Friday.
Prices of spice declilned further due to increased new crop arrivals at major trading centres against limited domestic, said market sources.
Domestic demand is poor at present as market participants are sidelined, expecting more correction in prices amid arrival pressure and higher production estimates.
However, lower prices have turned the commodity attractive for overseas buyers as the spice exports have surged by 11% during Apr-Mar 2017-18, claimed exporters.
Currently, Jeera from India is priced at $2,300-2,450 per tonnes, free on board, sharply lower than $2,900-$3,000 in Dec-Jan.
India had exported 119,000 tonnes of the commodity in 2016-17, as per Spices Board India.
Jeera production this year is pegged around 69.23 lakh bags (55kg each) against 59.32 lakh bags in last year, said Mr.Ashwin Naik, chairman of Federation Of Indian Spice Stakeholders in an interview.
Further, domestic and export demand remained poor at the moment as the market participants were expecting correction after recent jump in prices up to a level of lifetime high though the demand is expected to pick up pace due to empty pipeline, said Mr.Ashwin.
Jeera long term outlook is positive despite of higher production estimates as the supply will get tighter due to lower carryover stock this year, he added.
TURMERIC: Spot Turmeric prices traded higher by 1.30% at Rs.6,800/100kg at the benchmark Nizamabad market as compared with prices a week ago due to improved domestic and export demand.
The recent softness in price comes as the fresh lot starts arriving in mandies amid improved prospects of output in Andhra Pradesh, Telangana and Maharashtra.
Although crop might get affected in Maharashtra due to recent unexpected rains.
In Tamil Nadu, the production is lower this year, hit by rain deficit in the state. But the shortage has been compensated by other states.
Stockists did not turn aggressive buyers at that point on expectations of a further decline in prices as export demand slows.
Demand for the commodity has seen a sharp upswing, mainly from the medicinal and cosmetic industry.
However, the pressure in the market is because of fresh arrivals and this may depress the prices further.
As per trade sources, Turmeric production is pegged around 64 lakh bags (70kg each) as compared with 67 lakh bags a year ago.
Looking at current fundamentals and the crop report, turmeric will be under pressure in the short term, but it will draw support at lower levels on export demand revival in the next few months.
State
|
2017-18
|
2018-19
|
AP/TL
|
32
|
31
|
MH
|
23
|
24
|
TN
|
9
|
6
|
OTHER
|
3
|
3
|
TOTAL
|
67
|
64
|
|
|
|
Ending Stock
|
30
|
23
|
Domestic
|
55
|
55
|
Export
|
20
|
20
|
|
|
|
Fig in lakh bags
1 bag = 70kg
|
|
|
RED CHILLI: Spot Red Chilli Teja variety prices rose by 5.38% at Asia’s largest Red Chilli Guntur market due to good quality stock arrivals during the week which overseas buyers procured actively, said market sources.
Other varieties were also traded steady to firm as the domestic prices procured with fear of increasing prices.
Further, normally March is peak arrival season for Red Chilli and approximately 100,000 bags arrive on daily basis although farmers are reluctant to liquidate their stock due to current lower prices.
Arrivals today at Guntur market was recorded at 35,000 bags (40kg each) against 90,000 bags on same day a year ago.
Furthermore, implementation of eNam has also weighed on market sentiments as the market participants have said their is no proper system to implement it and traders and commission agents are opposing it as it will lower their profits.
As per a Mumbai based veteran trader, production this year is pegged around 2.25 crore bags against 4 crore bags (40kg each) in last session.
Red Chilli outlook is not certain despite of lower production estimate this year due to ample availability of stock from previous session amid supply glut.
(By Commoditiescontrol Bureau; +91-22-40015522)