Weekly:Red Chilli Was Top Gainer In Spices Complex On Strong Export Demand

MUMBAI (Commoditiescontrol) – Red Chilli and Turmeric gained the most during the week ending on Friday as the prices rose by 3.09% and 0.11% respectively, while Coriander prices plunged by 2.17% and trended weakest among spice complex.

Rates of Black Pepper/Chilli in Rs/Kg; Coriander, Jeera and Turmeric in Rs/100Kg:

Commodity	Market	Last Close	1 Week	1 Month	3 Month	6 Month	1 Year
Red Chilli	Guntur	10000	3.09%	17.65%	20.48%	47.06%	-16.67%
Turmeric	Nizamabad	7341	0.11%	-0.53%	-3.32%	34.70%	-2.73%
Black Pepper	Kochi	438	-0.45%	-2.88%	-12.40%	-29.92%	-35.87%
Jeera	Unjha	18809	-0.74%	-0.12%	-2.54%	0.75%	3.08%
Coriander	Kota	4831	-2.17%	3.98%	1.96%	-21.36%	-35.42%

Red Chilli:

Red Chilli was the top gainer under spices complex as the spot prices rose by 3.09% during the week ending on Friday as compared to last week prices due to persistent demand for Teja from international buyers.

Whereas, prices of other varieties traded according to the quality of the stock, said market sources.

According to a trader from Guntur, currently, the export demand is good as buyers from China, Indonesia, Bangladesh, Sri Lanka and Thailand are active in the market.

Further, this year due to low prices Chilli farmers shifted to cultivation of Cotton this has resulted in decline in sowing area to 45,256 hectares this year as compared to 65,347 hectares last year.

Lately, the prices of Red Chilli have recovered due to good export demand but the prices this year are still 16.67% lower compared to last year—at one point of time it had plunged down by almost 35% during April-July period.

The future prospects are suggesting declining in Red Chilli sowing area by around 40% in Andhra Pradesh due to crop shift and virus attack. However, the exact figures are not available at the moment.

Turmeric:

The prices of Turmeric were tad up by 0.11% during the week ending on Friday due to good domestic and export demand at lower prices.

Turmeric prices at the benchmark Nizamabad market has plunged down around 3.32% since last 3 months due to subdued domestic demand.

According to a trader, domestic demand is adversely affected after the implementation of GST as the business activities slowed down due to the confusion over the procedure of GST.

At National Commodity and Derivatives Exchange Ltd (NCDEX), prices of the most active December futures contract plunged down by Rs.178 or 2.54% during last week as market participants were engaged in cutting down positions tracking sluggish trend from spot market.

As per market sources, turmeric outlook is not promising as sufficient stock is available to cater domestic and export demand followed by 48,500 metric tonnes with AP Markfed.

AP Markfed held auction on from November 8 to November 11 to sale 2,321.62 metric tonnes through E-auction out of which, as per our market sources, 4,50 metric tonnes was sold at Rs.6,500-6,700/100Kg.

Turmeric stock at NCDEX accredited warehouse as on November 10 was recorded at 9,90 metric tonnes as compared to 2,724 metric tonnes same period last year.

Black Pepper:

Black Pepper prices eased by 0.45% during the week ending on Friday due to availability of imported pepper at cheaper rates, said market sources.

In the terminal market, on Friday, 8 tonnes of pepper were traded at Rs390-Rs410/Kg. Out of this, five tonnes imported pepper fetched the lowest price, trade sources said.

Trade sources further added that the reports were spreading that hundreds of containers of imported pepper were lying for clearance at various ports and ICDs in the country and that in turn has aided the decline in the spot prices.

Domestic demand in 2018 has been put at 58,000 tonnes as against 55,000 tonnes this year.

The exports have been shown at 21,000 tonnes next year up from 20,000 tonnes in 2017, said trade sources who have attended the IPC Session.

According to them, India would import 18,000 tonnes of pepper in 2018 as against 16,000 tonnes in 2017.

Further, Pepper prices are expected to trade sideways to down due to the prospects of higher imports and availability of imported pepper in domestic market.

Jeera:

Spot Jeera prices at the benchmark Unjha market eased by 0.74% amid slack domestic and export demand.

Similarly, prices of the most active December contract tumbled by 1.09% at Rs.18,855/100kg on the National Commodity and Derivative Exchange Limited (NCDEX).

As per a trader from Unjha, approximately 7-8 lakh bags stock is available in the market as compared to 10-12 lakh bags (55Kg each) during same period of time in the last year.

There are speculations of low stock availability in the market as the prices are pressurised due to subdued domestic demand.

However, Jeera sowing has started and there are prospects of area to rise as the farmers may switch from Coriander, Chana due to higher remuneration prices offered by the government this year.

Further, the prices are expected to trade in current price range as major participants have opted wait and watch approach and waiting for sowing to complete as the future trend is depends on that.

Jeera stock at the NCDEX accredited warehouses as on November 10 was recorded at 1,175 metric tonnes as compared to 6,049 metric tonnes during same period last year, as per exchange data.

Coriander:

Coriander prices dipped the most in spices complex during last week as prices tumbled by 2.17% at Kota market of Gujarat following subdued domestic and export demand against adequate stock position.

At NCDEX, Coriander’s most active December contract plunged by 2.61% at Rs.5,037/100Kg tracking sluggish tone from spot market.

Coriander prices are expected to trade sideways to down as ample stock is available in the market against muted domestic and sluggish export demand, said trade sources.

Coriander sowing has started in producing belts of Madhya Pradesh, Gujarat and Rajasthan and the area is expected to decline this year due to lower prices.

Coriander stock at the NCDEX accredited warehouses as on November 10 was recorded at 6,055 metric tonnes as compared to 13,537 metric tonnes during same period last year, as per exchange data.

(By Commoditiescontrol Bureau; +91-22-40015533)