Indian Spices Market Report- April 2020

• Chilli prices have shown a downward trend across varieties and grades as a result of the reduced demand due to COVID-19 related issues.
• Markets have been closed from 21st March onwards, due to the COVID-19 related lockdown measures implemented by the Government of India. Markets are likely to reopen from 4th May onwards.
• Farmers are quickly moving their stocks to cold storage. The crop is at peak harvesting stage, with approximately 70% of the harvest complete and moved out of the field. The remaining 30% is likely to reach cold stores or will be traded by the 4th week of April 20.
• Limited availability of workers, delayed harvest and post-harvest activities have impacted the quality of the crop. Cold storage stock has increased sharply with a major portion belonging to farmers.

Harvested material in the field

• Prices are expected to be firm for the short term for quality material and likely to move upwards in the medium term.

• COVID-19 impact and demand
• Arrival flow
• Quality material availability

• Harvest and post-harvest activities have been delayed due to lockdown measures implemented by the government of India from 25th March onwards due to COVID-19.
• Prices were supported at lower levels and have increased in the last couple of days due to post lockdown supply tightness and renewed demand. The electronic commodity platform traded with limited volumes at a 5% uptrend in price levels in the absence of a spot market.
• Almost 70% of the harvest is over across major origins and farmers are busy in post-harvest activities. Market activities are likely to be kick-started by 4th May onwards.

Post-harvest activities — Erode-TN

• Expected to be steady or better for the near term

• Lifting of the lockdown and functioning of market yards from Mid-April.
• Near term demand due to recent supply chain disruptions and empty pipelines.

• Overall supply is expected to be better vs last year for conventional cumin, but similar for EU compliant cumin.
• Market yards were closed the last week of March due to lockdown measures implemented by the government of India due to COVID-19.
• Conventional cumin prices were stable during March despite strong demand as a result of good arrivals. 
• EU compliant cumin harvesting activities were completed by Mid- March. There has been close to a 6% uptrend in price levels in the absence of a spot market.

Harvest activities - Barmer Rajasthan

• Both conventional and EU complaint cumin prices are expected to be firm

• Lifting of the lockdown and functioning of market yards from Mid-April.

• Demand destruction in the medium to long term due to ongoing coronavirus issues across domestic and key export destination markets.

• Carry in stocks are lower this year over last year; however, production is up this year. The overall supply is marginally down vs last year. Prices were stable during March.
• Market yards were closed the last week of March due to lockdown measures implemented by the government of India due to COVID-19.
• There has been close to an 8% uptrend in price levels during the lockdown period in the absence of a spot market.

Harvest activities - Rajasthan

• Prices are expected to remain firm

• Lifting of the lockdown and functioning of market yards from Mid-April.

• Demand destruction in the medium to long term due to ongoing coronavirus issues across domestic and key export destination markets.