MUMBAI (Commoditiescontrol) -
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BLACK PEPPER: prices were recorded 1.73% lower during the week ended on Friday as compared with last week closing price at benchmark Kochi market.
Although, spot pepper gained on Friday following the DGFT notification prohibiting the imports of pepper at invoice price below Rs.500 a kg.
High range sellers have raised their prices today. However, the buyers were keeping away due to the financial year closing, trade sources said.
The Centre on Wednesday barred import of the spice below the government-mandated minimum import price of 500 rupees a kg, by placing pepper in 'prohibited' category, traders said.
Following a nearly 60% decline in prices in 2017, the government had in December imposed a minimum import price of 500 rupees a kg to prevent dumping of cheaper and poor quality pepper in India.
However, since pepper was placed in the 'free' category under the import policy, it allowed importers to clear their shipments under adjudication proceedings by paying a nominal fine.
"Now prices will stabilize and may rise to 410-420 rupees per kg but how long the recovery will sustain is uncertain," said Vishwanath Keshavamurthy, co-ordinator of Bengaluru-based Pepper Growers Organisation.
In December, pepper prices had risen nearly 25% after the imposition of the minimum import price but the recovery was short-lived as imports from Indonesia, Brazil, and Vietnam via Sri Lanka had continued unabated as traders exploited loopholes in bilateral free-trade agreements.
In the terminal market pepper trade was recorded higher at 108 tonnes as compared with 52 tonnes last week.
CORIANDER: Spot Coriander prices plunged by 3.49% at Rs.5,278/100kg at benchmark Kota market amid ample stock position following rising arrivals from major producing belts.
Furthermore, business activities this week were recorded thin as the financial year 2017-18 is about to end and market participants are busy in filing Income Tax Returns.
Other hand, Coriander futures contract expiry in April plunged by Rs.261 or -4.97% at Rs.4,989 on Friday as compared with prices on Monday on the National Commodity and Derivative Exchange Limited.
Open interest of same contract on Friday was recorded lower at 22,330 lots versus 23,140 lots on Monday.
According to recently concluded seminar (Feb 23-24) called by Federation of Indian Spice & Stakeholders (FISS) the estimated area under Coriander during this year 2017-18 was pegged at 2.76 lakh hectares (includes Rajasthan, Madhya Pradesh and Gujarat).
These 3 states cover nearly 80% of total area in the country (as per 2016-17 sowing data), which means if we add remaining 20% in 2.76 lakh tonnes than the estimates total area could be around 3.31 lakh tonnes for 2017-18. Acreage under coriander during 2016-17 was estimated at 6.62 lakh hectares, according to Indian Spices Board.
The agriculture department on time to time release coriander advance estimate, but the industry don’t rely on them as they believe that government production data is overstated and thus they mostly rely on data produced by well-known people in the industry, however there is doubt over authenticity about the such data.
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.
JEERA: Spot Jeera prices tumbled by 1.81% at Rs.15,861/100kg at benchmark Unjha market during the week ended on Friday amid sustained selling pressure followed by sluggish domestic demand.
Higher production estimates have also weighed on prices since the sowing report has come out.
Other hand, Indian Jeera exports have been robust this year despite high prices as the country continues to dominate the global market.
Turkey and Syria are the other significant producers. Turkey is expected to enter the world market by the middle of the year, supply from Syria is likely get affected by the on going geo-political conflicts in the country, said the exporters.
Higher overseas demand and internal consumption are expected to cap the fall in jeera prices, they added.
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 declined by 1.03% at Rs.6,730/100kg at benchmark Nizamabad market due to sluggish domestic and export demand against higher new crop arrivals at major market across the country.
Domestic demand was also affected as the buyers turned sidelined due to financial year ending, said market sources.
Other hand, export demand is on lower side as they expect some further correction in prices with the expectation of new crop arrival will increase at major markets, they added.
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.
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.
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RED CHILLI: Red Chilli was the only gainer in spices complex during the week ended on Friday as prices rose by 2.04% due to good overseas demand during the week, said market sources.
Selected other varieties traded steady to firm depending on the quality of stock arrived at the market.
Prices of premium deluxe quality is higher as compared with the prices of medium best and medium quality stock.
Prices of premium deluxe quality stock rose since last year due to limited production amid pest/virus attack, said market sources.
Arrivals at Guntur benchmark market is lower as compared with previous year due to low production estimates amid lower acreage.
Furthermore, market activities were also affected due to the financial year ending.
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)
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