MUMBAI (Commoditiescontrol) - Black pepper was among the major loser this week ended Friday due to availability of imported pepper from Sri Lanka at lower rates, whereas strong export and better domestic demand pushed red chilli higher. Turmeric, Coriander and Jeera edged lower due to bearish cues.
.png)
Black Pepper
Black Pepper dropped 2.59% at Rs 48,800/100kg at the Kochi market on Friday due to availability of imported pepper from Sri Lanka at lower rates coupled with liquidation of over four years old exchange released material is reported to have pushed down the spot pepper prices. A strong rupee will prompt more and more imports, trade sources claimed.
Imported pepper is said to be available in almost all the markets through out the country and, as a result, the demand has narrowed down bringing the prices sharply down.
Importers who have allegedly imported 100 tonnes of Vietnam pepper via Sri Lanka were offering the material cheaper in the open market here, trade sources said.
Buying activities have slowed down following reports of FSSAI checking of the imported pepper for pesticide residues, market sources said.
The Commerce Ministry is reported to have directed the nodal agencies responsible for food safety and security to carry out checks on pepper being imported into the country for contamination, they said.
The government's decision comes in response to the repeated appeal from the growers and traders about the arrival of Vietnam pepper via Sri Lanka on mis-declaration. Besides, it is being alleged that the Vietnam pepper contains high level of pesticide residues, they said.
This phenomenon has led to slow down in buying and consequent sluggishness in the market.
Indian parity in the international markets was at $7,800 a tonne cf for Europe and $8,050 a tonne cf for USA.
Turmeric
Turmeric dropped 1.75% at Rs 7,242/100kg at the key Nizamabad market after AP Markfed announced to auction 9,000 metric tonnes of Turmeric from total 48,500 metric tonnes procured earlier to support farmers after prices went down to multi-year low.
The report of auction by AP Markfed prompted buyers to wait for outcome as there was probability of prices to decline due to increase in availability. However AP Markfed official on Friday confirmed about the postpone of auction due to sharp drop in prices, however trade sources claimed that federation were forced to postpone auction due to lukewarm response for auction.
Turmeric demand at present is good from overseas buyers and domestic inquiries are also likely to increase ahead of festival season.
Coriander
Coriander prices plunged this week by 1.16% at Rs 5,106/100kg at the benchmark Kota market of Rajasthan due to lackluster demand and prospects of imports from overseas due to cheap availability.
An Ukraine based exporter has offered new crop Coriander at $400 per tonne FOB, which in India rupee costs below Rs 26/kg, and much lower than what was available in the domestic markets.
India imported Coriander in good quantity from Russia and Ukraine during financial year 2016-17 due to cheaper rates, which has pushed down prices sharply lower in the domestic market and similar case is likely to witness in case overseas Coriander makes it way to Indian kitchen, said a trader from Kota.
Coriander prices in the coming weeks may trade steady with festival demand may lend some support, but overall outlook is not very promising due to sufficient stocks in the country with cheaper foreign crops.
Jeera
Jeera declined a tad this week mainly due to hesitant demand from local and upcountry buyers at the higher level with volatility on futures. Further trade activity in the spot markets was disrupted due to heavy rainfall and floods in Gujarat, the major trading and producing state in the country.
Unjha, benchmark market for Jeera trade, was mostly closed this week due to heavy rainfall. Arrivals in the other markets of the state was thin as very few stockists and farmers participated to consistent heavy precipitations.
Though Jeera prices during the week shown less demand, but likely to perform strong in the coming weeks with lesser stocks left in the hands of farmers followed by expectations of domestic and overseas demand to pick up momentum.
Red Chilli
Red chilli was the major gainer in spices complex with 2.98% at Rs 7,650/100kg due to strong overseas demand. Chinese buyers are active in the market since last few weeks and doing bulk buying, but its improvement in demand that has provided acceleration in prices.
Domestic demand earlier last week was subdued, but that was not the case this week as they have kicked up their buying to refill inventory ahead of festivals.
Overseas buyers are procuring Red Chilli Teja premium quality over Rs 7,500/100kg with domestic buyers are making deals in all varieties as per consumption in their regions.
Earlier buyers were sidelined as they were hesitant to make purchase amid falling rates, but now there is very less room for further fall in prices that has prompted them to source for their future needs.
Red chilli sowing in Andhra Pradesh as on July 27 stood at 4,000 hectares versus 13,000 hectares of normal area same period last year. The state government target 1.35 lakh hectares for the current season.
(By Commoditiescontrol Bureau; +91-22-40015533)
0 Comments 
Post Comment 
