Weekly: Turmeric Gains Most This Week; Chilli Remains Bearish

MUMBAI (Commoditiescontrol) - Turmeric was the major beneficiary in spices complex during the week ended Friday, whereas Chilli was among the major looser with subdued tone observed in Coriander, Pepper and Jeera.

Turmeric
Turmeric gained 6.66% at 5,940/100kg at the benchmark Nizamabad market due to increased demand at the lower level, dry weather concern and strong futures market.

Buyers in turmeric turned active due to some demand at the lower level and prospects of production to fall next season amid expected losses in acreage as farmers are likely to shift to other remunerative crops.

There are talks in the market that turmeric prices are likely to rise sharply ahead due to expectations of lower production followed by increase in demand, however market experts are not very bullish about the commodity since supply-demand are pretty much well balanced, however they didn't ruled about short-term gain.

Turmeric July futures during the week on the National Commodity & Derivatives Exchange (NCDEX) surged 6.54% at Rs 6,150/100kg. It traded between Rs 5,790 to Rs 6,060.

Turmeric prices next week likely to trade weak as demand has slowed down at the higher level with sufficient supply in the country. The future trend is now heavily depend on monsoon progress.

Red Chilli
Red chilli remained under pressure as prices slipped by 4% at Rs 4,850/100kg at the key Guntur market of Andhra Pradesh due to lackluster demand against huge crop. Demand is not encouraging in the spot markets as buyers are bearish in the commodity.

Export demand is good for red chilli, but its continuous decent supply in the spot market against slow demand weighed on prices, said traders.

Red chilli prices are likely to trade steady to weak ahead due to low off take and consistent good supply.

Coriander
Coriander prices at the Kota market dropped 1.15% at 5,258/100kg due to lackluster domestic and export demand. Supply of coriander in the spot market is ample and thus buyers are not very keen to buy in large quantity.

Further sellers are active in the markets ahead of GST due to confusion about input credit, said traders.

According to industry people, coriander is likely to trade sluggish ahead due to good stocks with traders and farmers followed by sluggish demand. Further forecast of rainfall in central India and Rajasthan is also likely to weigh on prices.

Jeera
Jeera ended the week tad down at Rs 18,541/100kg at the benchmark Unjha market due to weak demand from domestic buyers ahead of GST. Instead sellers are active in the market to liquidate their stocks due to uncertainty about GST input credit. However fundamentals are positive in Jeera due to tight balanace sheet.

According to trade sources, "Only 15-18 lakh bags (55kg each) of Jeera left and still 8 month remaining for the new crop to arrive and balance sheet will be tight going forward, which will keep prices elevated."

Export demand in Jeera at present is normal, but likely to improve from next month as India is the major supplier of the commodity.

On futures, NCDEX Jeera July futures dropped 1.97% at 18,590/100kg due to increased selling pressure. However sharp fall in prices will be prevented by positive fundamentals.

Jeera prices next week may start with negative tone due to GST concern among traders, but tight supply-demand balance likely to support prices ahead.

Black Pepper
Black Pepper was tad down this week at Rs 50,400/100kg at the Kochi market. Buyers confused over the GST provisions were not actively participating in the trading activities. Upcountry dealers are allegedly advised not to carry out trading dispatch material till all the doubts and confusions on the GST provisions are cleared, trade sources said.

Further imported pepper from Vietnam via Sri Lanka was available cheaply, they claimed.

Indian parity in the international markets was at $8,075 a tonne cf for Europe and $8,325 a tonne cf for USA.

Vietnam is reported to have reduced its prices to $4,000 a tonne after raising it to $4,500 a tonne recently. Its landed cost in India when imported via Sri Lanka after paying 8 per cent import duty and $1,200 per tonne to the intermediary there, would come to around Rs385 a kg, trade sources here claimed.

Meanwhile, according to the Spices Board sources pepper exports from India during 2016-17 fell sharply registering a decline of 37 per cent in volume and 34 per cent in value. India, they said, shipped out 17,600 tonnes of pepper valued at Rs1,141.89 crore last fiscal as against 28,100 tonnes valued at Rs1,730.42 crore in 2015-16.

Black pepper is likely to trade sluggish next week due to poor domestic demand with import of cheaper material from overseas market.

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