MUMBAI (Commoditiescontrol) - Major spices ended the week on a negative note on Friday.
Rates in Rs/100kg:
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Commodity
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Market
|
Last Close
|
1 Week
|
1 Month
|
3 Month
|
6 Month
|
1 Year
|
|
Black Pepper
|
Kochi
|
42900
|
-3%
|
-5.09%
|
-2.28%
|
-12.80%
|
-32.44%
|
|
Coriander
|
Kota
|
5377
|
-2.20%
|
-3.29%
|
11.05%
|
11.10%
|
-17.12%
|
|
Jeera
|
Unjha
|
19426
|
-1.25%
|
-5.73%
|
2.91%
|
-0.07%
|
7.33%
|
|
Turmeric
|
Nizamabad
|
7200
|
-1.76%
|
-6.19%
|
-1.71%
|
-7.55%
|
-2.08%
|
|
Red Chilli
|
Guntur
|
10000
|
-1.96%
|
1%
|
No Change
|
5.26%
|
18%
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BLACK PEPPER: Spot pepper fell sharply on Friday on heavy selling of imported and indigenous produce in the consuming markets across the country, according to trade sources.
They said those who are holding good volumes of imported pepper from Vietnam and Sri Lanka are liquidating the stocks fearing entry of more and more imported pepper in case the Centre exempts all imports for value addition and re-export from the MIP conditions.
The Union government has already exempted imports by oleoresin industry for re-export from the ambit of MIP.
Similarly, when other imports for value addition as such as sterilization and re-export are also exempted, the chances are high for the imported material slipping into the domestic markets because of the long rope of 120 days available to the importers for re-export, they claimed.
Fearing such a scenario at a time when the harvesting in the country is getting into full swing, the holders of imported pepper have resorted to a selling spree, they said.
Consequently, the spot prices fell sharply today by Rs.600 a quintal to close at Rs.40,200 (ungarbled) and Rs.42,200 (garbled) a quintal.
An estimated 1,200 tonnes of exchange released pepper were being offered at Rs.415 a kg while the buyers were at Rs.400 a kg on Thursday.
Besides, harvesting in Karnataka is also likely to begin later this month. Hence, the trade sources believe that there would be a selling pressure in the coming weeks which will drag the prices further lower.
The data for the past five years show that except for 2015-16, export and import of the commodity remained mostly at the same levels.
Further, 1,62 tonnes Indian Pepper was traded this week as compared with 50 tonnes last week.
CORIANDER: Spot Coriander prices at benchmark Kota market of Rajasthan tumbled by 2.20% at Rs.5, 377/100kg during the week amid selling pressure followed by entry of new crop in small quantities, said market sources.
The domestic demand in spice is hand to mouth as the buyers are avoiding any bulk deals as they feel the prices will decline further during the peak arrival season, they added.
Other hand, export demand is good in Coriander due to buyers turned active to procure at lower rates as the prices has almost tumbled by 3.30% as compared with last month prices.
As per Commerce Ministry data, Coriander export have shown growth of 20.89% during Apr-Nov 2017 at 18,145 metric tonnes against 15,009 metric tonnes during same period last year.
Arrivals in the benchmark Kota market is increasing as stockiest, farmers wants to liquidate their old stock as the prices of old stock will fall further during the peak arrival period.
New crop arrivals will increase from mid February as the standing crop is almost ready for harvesting in major producing belts, said market sources.
Other hand, The influence of overseas markets such as Syria and Turkey will only be felt post June, when the domestic arrivals will start drying.
As per trade estimates, Coriander imports this year is expected to decline this year as the prevailing prices are more or less same as compared to prices in rival countries.
Production of Coriander this year is pegged at 80 lakh bags (40kg each) due to lower sowing though the yield is expected to remain same as last year or decline upto maximum 10%.
As per market sources, Outlook for Coriander is positive as the prices will gain after peak arrival season due to lower production this year.
Coriander futures April month prices declined by Rs.97 or 1.7% at Rs.5,712/100kg during the week on the National Commodity and Derivative Exchange Limited.
Open interest of same contract was recorded higher on Friday at 22,840 lots versus 22,670 lots on Monday.
Coriander new crop stock at the NCDEX accredited warehouses in Gondal as on February 04 was stood at 7, 691 mt (Unencumbered i.e free of debt ), as per exchange data.
JEERA: Spot Jeera prices eased by 1.25% at Rs.19,426/100kg at benchmark Unjha market of Gujarat during the week ended on Friday amid entry of new crop arrival in small quantities.
Prices of Jeera tumbled by Rs.50/20 at major markets on Friday due to weak cues from futures market, however demand is said to be good, claimed market sources.
Other hand, Traders see India's jeera output rising to around 65-70 lakh bags (55 kg each) in 2018-19, mainly driven by the rise in acreage in Gujarat and Rajasthan, the top producers of Jeera.
The official sowing data for Rajasthan, the second largest producer is not available.
Jeera exports are set to rise in 2017-18 (Apr-Mar) due to the ongoing political unrest in Syria and decline in stocks in Turkey.
Jeera exports during Apr-Nov 2017 was recorded higher by 14.74% at 95,928 metric tonnes versus 83,607 metric during same period last year.
Until the new crop arrives at rival countries in June, India will be the sole supplier of the spice in the global market.
European countries, Singapore and China are buying jeera from India at $2,900-$3,000 per tn.
The 67% rise in prices last year encouraged farmers to sow more of the spice hence this year the spice is set to lose flavour as supplies are set to rise with output seen up 30%.
The rise in production, and thus supplies, is likely to ease Jeera prices during peak arrival period i.e March and April.
On Futures, Jeera March month expiry contract during the week declined by Rs.170 or 1.04% closing at Rs.16,420/100kg on the National Commodity and Derivative Exchange Limited.
Jeera new stock at the NCDEX warehouses as on February 08 was recorded at 2,84 mt (Unencumbered) and 3,94 mt (Pledged) in Jodhpur while 3,392 mt (Unencumbered i.e free of debt) and 4,828 (Pledged i.e given as security on a loan) in Unjha, as per exchange data.
TURMERIC: Spot Turmeric prices dropped by 1.76% at Rs.7,200/100kg at benchmark Nizamabad market during the week ended on Friday.
Turmeric prices are expected to trade sideways to downward amid sufficient stock availability in major markets followed by entry of new crop in small quantities and subdued domestic demand.
However, the fundamentals support a firm market on the basis of reports that the production in Tamil Nadu, Andhra Pradesh and Telengana would be lower than last season.
As per market sources, the begging stock this year is pegged around 22 lakh bags (70kg each).
Other hand, Increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to 1,16,500 tonne in volume and Rs 1,241 crore in value terms in 2016-17. There are expectations of improved demand in coming weeks from the export market.
Turmeric futures contract prices delivery in April was recorded higher by Rs.130 or 1.82% closing at Rs.7,250/100kg on the National Commodity and Derivative Exchange Limited.
Open interest of same contract was recorded lower at 10,760 lots against 10,920 lots on Monday.
As per market analyst market participants on futures market were engaged in covering their short positions during the week.
RED CHILLI: Spot Red Chilli Teja variety prices declined by 1.96% at benchmark Guntur market of Andhra Pradesh amid subdued export demand, said a veteran trader from Guntur.
Demand from overseas buyers turned sidelined this week due to higher moisture content in new crop arrival stock, they added.
Although, prices of other varieties traded steady to firm amid prospects of lower production due to lower acreage and unfavorable climatic conditions.
Further, The Horticulture & Food Processing Department of Madhya Pradesh expects Chilli production in 2017-18 (Jul-Jun) to fall 29% on year to 247,000 tn due to pest attack and fall in acreage. Chilli production in 2016-17 was 350,000 tn.
Acreage under chilli has fallen to 98,857 ha in 2017-18, down 19% from last year, Madhya Pradesh is the fourth largest producer of chilli.
The state's chilli output has been declining for the last three years due to incessant pest attacks.
The major chilli affected areas in the state are Khargone, Badhwani, Dhar, and Khandwa regions in the western and southern parts of the state.
Chilli outlook this year is positive due to lower production as farmers lost interest last year because of lower prices during sowing period.
Consumption of chilli is increasing substantially with the branded powder sales growing at a compound annual growth rate of 11% while the spices mix category is growing at a CAGR of 7%, according to a spices board report on the commodity.
(By Commoditiescontrol Bureau; +91-22-40015522)
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