Weekly:Major Spices Trades Firm; Coriander Soften

MUMBAI (Commoditiescontrol) – Black Pepper, Red Chilli, Turmeric and Jeera ended with a positive note during the week ended on December 15th however, prices of Coriander eased by 0.29%.

Rates in Rs/100kg:

Black Pepper:

Black Pepper spot prices at the benchmark Kochi market ended higher by 8% during the week ended on Friday as compared with previous week price amid tight supplies as farmers are reluctant to sell their stock at current low prices, market sources said.

"Everybody is holding back hoping the prices would cross Rs500 per kg", they added.

On Friday, farmers/primary market dealers were selling their produce in pouches to Sabarimala pilgrims coming from other states.

The latter are buying it on their way back home. This phenomenon has also aided the price rise, they said.

Further, in recent times, decline in the domestic pepper price due to cheaper import of pepper from other origins has been a major concern among pepper growers. Pepper prices have gone down by nearly 37 per cent in one year and have resulted in a lot of hardship for pepper growers.

The Union Ministry of Commerce and Industry has approved the proposal of the Spices Board for fixing Rs.500 per kg as minimum import price for black pepper to protect the interests of pepper growers.

Since most of the pepper-producing countries are in the ASEAN region, there have also been apprehensions of pepper from these countries, being routed through Sri Lanka taking advantage of lower duty under SAFTA and ISLFTA, for availing concessional import duty.

Fixing of minimum import price will help in improving the domestic price particularly when the harvesting season of pepper is fast approaching.

Meanwhile, because of rains in the region for the past few days harvesting is not taking place, said a primary market dealer.

Red Chilli:

Red Chilli prices at the benchmark Guntur market of Andhra Pradesh was recorded more or less steady during the week ending on Friday due to thin business activities.

However, the prices of Teja variety advanced by 1.05% as the buyers were procuring to meet their short term requirements, said a local trader.

Further, present stock in Guntur market is estimated around 25 lakh bags (40kg each) as compared with 15 lakh bags during same period last year due to bumper production in 2016-17.

Red Chilli production output is estimated around 3.5 to 3.75 crore bags versus 4.25 to 4.5 crore bags as the farmers lost their interest in commodity due to lower prices this year, as per Mumbai based trader.

Lower production this year is not only attributed by the lower sowing report but also by the virus attack on the crop in producing belts of Madhya Pradesh, he added.

Red Chilli prices are expected to trade in current prices range despite of lower production prospects due to higher carry over stock this year.

Turmeric:

Turmeric was the top gainer under spices complex during the week ended on Friday as the prices rose by 1.24% due to good buying support by overseas buyers at the prevailing prices.

Domestic demand at present is hand to mouth as the participants are not sure about the future trend amid sufficient stock availability followed by supplies by AP Markfed through E-Auctions.

Meanwhile export demand is seen supportive as the overseas buyers are procuring in advance to meet their coming requirement due to upcoming festival season i.e Christmas.

Further, new 6 month crop has started to arrive at the benchmark Nizamabad market. On Tuesday, the market received first batch of 5 bags (70kg each), said Poonam Chand Gupta.

Around 25 bags arrived on Wednesday and the fresh finger variety was sold at 5,668 rupees per 100 kg, while the fresh bulb variety was sold in the range of 5,222-5,668 rupees in Nizamabad.

The harvest of the nine-month crop, which commands a higher price usually, begins in December end, and the fresh crop enters the market in mid January.

Current Turmeric stock all over India is pegged around 25-27 lakh bags (70kg each) the breakdown is as follows: Telangana- 4.5 lakh bags, Andhra Pradesh- 9 lakh bags, Tamil Nadu- 7 lakh bags, Maharashta- 4.5 lakh bags & other- 2.5 lakh bags.

Further, crop in the producing belts of Andhra Pradesh, Telangana, Nanded and Basmatnagar area is reported to get affected by virus/pest attack which will affect the outcome by 10-20%.

"The prices of this crop are likely to remain steady at current levels for now, it may start declining after mid-January when the regular variety starts arriving due to weak fundamentals," he said.

Jeera:

Spot Jeera prices recorded more or less steady at the benchmark Unjha market of Gujarat due to lacklustre business activities despite of prospects of dwindling stock.

At present, there are prospects of lower stock availability in the physical market though the exact numbers cannot be stated.

Meanwhile, on futures market the most active January contract eased by 0.33% at Rs.21,450/100kg during week ended on Friday tracking weak trend from the physical market.

Further futures prices of the spice has touched the lifetime high as the market participants feel the prices will rise in coming season despite of higher sowing reports.

Jeera sowing is in progress and the sowing is recorded higher so far as the farmers had switched to Jeera from other commodities for better returns.

Jeera sowing as on December 11 in Gujarat was recorded higher by 38% at 311,400 ha against 226,700 ha during same period last year, as per Gujarat Agriculture Department data.

Jeera stock at the NCDEX accredited warehouses as on December 15 was recorded at 8,907 metric tonnes, as per exchange data.

Coriander:

Spot Coriander was the only loser under spices complex during the week ended on Friday as the prices at the benchmark Kota market soften by 0.29% amid subdued domestic and export demand supported by weak fundamentals.

Meanwhile, on futures the prices of the January was recorded more or less steady as the prices was recorded tad up by 0.65% on the National Commodity and Derivative Exchange Limited tracking sluggish trend from spot market.

Further, fundamentals are weak in Coriander due to sufficient stock availability followed by subdued export and domestic demand.

On the other hand, export of Coriander from April to September 2017 was recorded higher at 13,755 metric tonnes against 12,134 metric tonnes, as per Commerce Ministry data.

Export of Coriander is recorded higher this year as the prices plunged around 20-25% earlier this year because of which overseas buyers procured stock at the lower prices.

Further, sowing of Coriander is in progress and the area is expected to decline as the farmers will switch to different commodities for better remuneration.

Coriander sowing in producing belts of Gujarat as on December 11 was recorded lower at 62,600 ha versus 100,800 ha during same period last year, as per Gujarat Agriculture Department data.

Coriander stock at the NCDEX accredited warehouses as on December 15 was recorded at 12,588 metric tonnes, as per exchange data.

(By Commoditiescontrol Bureau; +91-22-40015522)