Weekly: Coriander, Turmeric Move Up; Jeera, Black Pepper Rule Weak

MUMBAI (Commoditiescontrol) - Coriander and turmeric prices moved higher while jeera and black pepper prices ruled weak at key market yards in the country for the week ended on April 6. On the other hand, red chilli prices remained steady.

Red Chilli

Major red chilli markets remained mostly steady during the week due to better buying support, shortage of good quality stock against higher arrivals.

However, medium quality stock continued to remain under pressure.

As per trade sources, good demand is now emerging from Dubai and Bangladesh for Teja variety. Moreover, shortage of deluxe quality stock may push demand up in 334 and 341 varieties

Meanwhile, light demand has been coming from spices companies for phatki and pala varieties due to their lower quotes at market yards. Furthermore, farmers are offloading medium quality stock due to its better rates.

As far as old stock is concerned, it has been depleting gradually from major markets. A total of 30 lakh bags of new crop and 10 lakh bags of old crop are still left at cold storages in Guntur area.

Demand for phatki, pala and seed varieties may increase in coming days due to rising demand of medium best quality stock.

As per sources, enquiries remained better for good quality stock as spices companies prefer it while enquiries for medium and low qulity remained dull. But shortage of good quality stock may shift demand towards medium quality ahead.

They further said higher arrival may weigh on prices in coming days but on the other hand likely increase in demand from Bangladesh, Dubai and other Muslim countries during Ramadan Season, which will run from May 15 to June 14 in 2018, may lift prices.

At the Guntur market yard, arrival during the week was reported over 3.15 lakh bags while total arrival for the same period stood at over 6 lakh bags at Guntur, Warangal, Khammam, and Byadagi markets.

Jeera

Spot Jeera prices declined during the week on rising arrivals. Traders are hopeful of better business ahead on the back of emerging export demand.

As per traders, trade activities have badly affected due to the roll-out of e-way bill and stockists are now hesitating in stocking up the spice due to cash crunch. Moreover, farmers are also not accepting cheques owing to difficulties in receiving cash through banks.

Spice is available comparatively at lower rates at market yards in Rajasthan so they are uninterested in stocking up local produce, as per Rajkot traders. Prices are likely to witness some pressure due to robust arrival in Rajasthan ahead.

On the other hand, prices are unlikely to decline sharply in coming days due to improvement in demand from China.

Another trader from Unjha said that pace of arival may slow in next 15 days which is likely to support prices but increase in arrival in Rajasthan may limit gains.

However he further opined that after one month prices are likely to see stability with positive bias.

Meanwhile market sources said currently hedging is not viable in Jeera as futures prices are ruling below the spot prices but in coming days it will become viable as futures prices will move ahead compared to spot prices.

During the week (March 28 - April 6), Jeera April contract declined 2.8 percent or Rs 420 per 100/kg with fall in volume and open interest by 66.75 percent and 53.7 percent, respectively.

Turmeric

Good export demand kept turmeric prices buoyant at key markets during the week despite strong arrivals.

As per market experts, prices are likely to see more upside in coming days as arrivals at Nizamabad and Vikarabad will slow in next 15 days.

Meanwhile, farmers are bringing their crops at market yard due to better realisation and availability of prompt buyers.

On the other hand, Erode market in Tamil Nadu remained closed throughout the week which has affected supplies of spice in the state. The market yard will likely to reopen on Monday.

As per report, at Nizamambad shradhanand market yard, 12 lakh bags of turmeric have arrived in this year so far and another 7-8 lakh bags of spice are likely to arrive ahead. Only at Nizamabad, total traded value of turmeric stood at record level of Rs 1,350 crore. It is to be noted that Nizmambad market gets 70% of its revenue from turmeric trade.

Prices are likely to get support at existing lower levels from export demand coming from Bangladesh and Dubai, sources said. Demand during Ramadan Season, which will run from May 15 to June 14 in 2018, may also support turmeric prices but arrival at other markets may weigh on sentiment, they added further.

At NCDEX, turmeric April contract gained Rs 160 per 100/kg or 2.48 percent with 1.73 percent decline in volume while open interest moved up by 32.84 percent.

Coriander

Good buying support from stockists and spices companies at existing low levels coupled with increased supllies of good quality stock before Akshaya Tritiya pushed coriander prices up during the week.

The key Ramganj, Kota amd Baran market yards witnessed an increase in prices by Rs 200-300 during the review period. Farmers generally offload their produce before the AKshaya Tritiya which falls on April 18.

Only Ramganj market yard received more than 1 lakh bags of coriander during the week.

Similarly, prices at Madhya Pradesh markets remained at higher level despite better arrivals.
As per sources, stockists have already stocked up the spice earlier at low levels and are now unable to stock up the spice due to full godowns which may hamper buying ahead and finally resulting in likely pressure on prices in next 15 days.

Moreover, Gondal market in Gujarat received 90,000-95,000 bags of spice during the week.
At NCDEX, coriander April delivery during the review period gained by Rs 206 per 100/kg or 4.1 percent with gain in volume and open interest by 28.85 percent and 73 percent, respectively.

Black Pepper

Black pepper prices remained marginally lower during the week due to selling pressure coming from from Karnataka and Kerala.

Most of the traders remained unable to strike any deal due to poor understanding of e-way bill which has been rolled out from last Sunday.

At the same time, smuggling of Vietnam pepper into India via borders with Myanmar, Bangladesh and Nepal was also allegedly taking place rampantly.

Meanwhile, imported 550 GL pepper was allegedly being processed in modern facilities and the bulk density raised to 585 GL and sold as Karnataka pepper, market sources said.

Moreover, pressure from Vietnam is felt in the markets as harvesting has begun in full swing there. Vietnam prices were at $2,700 - $2,800 a tonne cf for 550 GL pepper, trade sources said.

In Vietnam buying interest is reported to have increased and price rose further marginally. Exporters remained cautious at current level, expecting to receive better price.

Offers of Lampung and Bangka decreased for the new crops in July/August. In Sarawak and Sri Lanka the price was relatively stable.

Sri Lankan crop is estimated at 12,000 tonnes but with a carry forward stock of 10,000 tonnes total availability will be at 22,000 tonnes this year. Out of total availability, around 2,000 tonnes would be marketed as light pepper, trade sources said.

Spot prices fell by Rs 5 per kg or 3 percent (ungarbled) and by Rs 5 or 1.25 percent (garbled).

Indian parity in the international markets (c&f) weakened by 1.17 percent for Europe and 1.12 percent for USA.

NCDEX April Contract (Rs/100kg)

Commodity	6-Apr	28-Mar	High	Low	Change %	Net Change	Volume 28 March	O I 28 March	Volume 6 April	O I 6 April	Volume Change %	OI Change %
Coriander	5234	5028	5412	5024	4.10	206	7460	16730	5790	9670	28.84	73.01
Turmeric	6614	6454	6648	6400	2.48	160	1990	7240	2025	5450	-1.73	32.84
Jeera	14520	14940	15290	14480	-2.81	-420	2442	2283	7341	4929	-66.73	-53.68

Black Pepper (spot prices Rs/per kg; c&f $ per metric tonne)

Black Pepper (Kochi)	6-Apr	28-Mar	Change %	Net Change
Ungarbled	378	383	-1.31	-5
Garbled	398	403	-1.24	-5
Europe	$6350	$6425	-1.17	-75
USA	$6600	$6675	-1.12	-75

(By Commoditiescontrol Bureau; +91-22-40015567)