Coriander Gains Over 5% This Week On Strong Demand

MUMBAI (Commoditiescontrol) - Coriander was the top gainer spice this week on strong demand emerged at the lower level supported by firm cues from futures market. Other spices also performed positive on improved demand ahead of festival season.

CORIANDER
Spot Coriander was the among the top gainer during the week with rising as much as 5.1% at Rs 5,061/100kg at the key Kota market of Rajasthan due to increased demand at the lower level supported by bullish cues from futures.

There has been some good demand observed in Coriander during the week as lower prices attracted buyers to procure the commodity to meet festival demand. Not only south India based buyers were active, but buyers from North India, North-East were also in the market to cover positions.

According to trade sources, "Coriander prices was trading around bottom level and there is not much room for downside and thus stockists and masala powder manufacturers, traders were very much active." Meanwhile the overseas Coriander is said to be expensive to import after applying duty of around 36.14%, they said.

Domestic Coriander prices was badly hurt in the recent years mainly due to increasing imports due to cheap and ample availability, but now since overseas produce are not in parity, domestic buyers prefer to source local crop, the noted.

Some more, but limited upside in Coriander prices can't be ruled out supported by festival buying with slow farmers and stockists selling, they claimed.

The most active September delivery Coriander climbed 3.20%, or Rs 155 at Rs 4,987/100kg on the National Commodity & Derivatives Exchange Ltd (NCDEX). The contract during the week hovered in the range of Rs 4,715 to Rs 4,987.

Volume in Coriander during the week rose sharply and so as price, giving bullish signal, however one should keep a close eye on declining open interest as it might be due to liquidation of positions by bulls at the higher level.

RED CHILLI
Red Chilli edged higher by 1.21% at Rs 5,600/100kg at the benchmark Guntur market of Andhra Pradesh due to strong demand from export markets. There has been very strong inquiries for Teja variety from overseas buyers.

Red Chilli targeted area in Andhra Pradesh is 1.35 lakh hectares out of which 0.30 lakh hectare has been sown as on August 23 as compared to 0.34 lakh hectares same period last year. Sowing of Red Chilli as on August 22 in Telangana, stood at 0.06 lakh hectares lower than 0.15 lakh hectares same period last year, as per telangana agriculture department. Production may decline this year as prices have dropped around 60% as compared to last year same time.

Teja variety prices are expected to rise further due to good demand from export. Teja is widely shipped due to better quality, taste famous for its pungency, said Kamal Jain, a trader from Guntur.

JEERA
Jeera notched gain of 0.68% at Rs 19,573/100kg in Unjha market of Gujarat this week due to improved domestic and export demand followed by strong cues from futures.

Spices trader from Unjha stated that lower availability of the commodity with stockists has pushed up the prices. “In the international market, too, the supply was thin, thereby leading to an increase in Indian jeera demand overseas. This has jacked up the prices in the past month,” said Patel, adding that the trend may continue till the September-October festival season.

Jeera production in India fell 13 per cent on a year-on-year basis to 3.87 lakh tonnes in 2016-17. Reduced production in the previous season caused lower carryover stock, which is seen as a factor for prices rising in the run-up to festival season.

As anticipated by the Seeds and Spices Stakeholders Association (SSSA), arrivals from Syria and Turkey to the global markets failed to add sufficient quantities. “The carryover stock was almost nil and at one of the lowest levels of the past decade. This is due to lower crop scenario. Turkey and Syria were expected to add some volumes to global markets around June-July. India will continue to be a major supplier to the world and that will keep prices firm,” said Ashwin Nayak, a member of SSSA.

Analysts maintained that the monsoon fury in parts of Gujarat and Rajasthan, where a large part of the jeera crop was stored, is feared to have caused some damage and quality issues may see prices escalating further.

According to trade sources, arrivals from Syria and Turkey to the global markets failed to add sufficient quantities. “The carryover stock was almost nil and at one of the lowest levels of the past decade. This is due to lower crop scenario.

Turkey and Syria were expected to add some volumes to global markets around July-August. India will continue to be a major supplier to the world and that will keep prices firm,” they said.

NCDEX Jeea Septmeber delivery during the week ended 2.26%, or Rs 445 higher at Rs 20,105/100kg after trading in the range of Rs 19,510 to Rs 20,250. Volume and open interest in the contract rose this week along with price is a indication that prices may continue upsurge next week as well.

TURMERIC
Turmeric prices ended 0.47% higher at Rs 7,592/100kg at the Nizmabad market of Telangana Pradesh this week on some good domestic demand and concern about lower production next season amid scanty rainfall in many producing belts.

As per the market sources, scanty rainfall in major producing belts may affect the crop this year as turmeric crop requires good rainfall for better yield.