Indian Spices Market Report- April 2021
Crop & Market Scenario
- Partial lockdowns in India due to a surge in positive Covid-19 cases, which has caused a reduced demand in the last couple weeks
- Overall demand for chilli is normal to low, but slow for China and Bangladesh
- Domestic demand is continuing as normal
- Stock at major markets is active and covering all the major varieties, anticipating good prices during the offseason
- Quality material availability has come down across markets
- Stock at Guntur was at 0.18 million MT and total stocks across trading centers is expected to be around 0.49 million MT
- 70% of the chilli has been harvested. The remaining crop should be harvested in major growing regions before the first week of May '21
- Traditional crop at Karnataka is over by 90% and Tamil Nadu crop yields are expected to come down going to be at 50% of the normal production
Near Term View
Prices are expected to be range bound for good qualities and expected to firm up in the medium term
Major Varieties Price Trend - Guntur Market
Factors to Watch
- Demand from both domestic and export markets
- Quality availability in the next fortnight
- Stock-ist activity
Crop & Market Scenario
- New arrivals are flowing across origin, especially in Maharashtra & Tamil Nadu, and should be in full swing
- Due to the surge in Covid-19 cases, full and partial lockdowns have been declared across some origins, which may affect the crop arrival speed and demand
- Prices corrected down by 10% vs last month due to fresh crop arrivals & subdued demand at higher price levels
- Processors and exporters who were waiting to cover their annual supply in Apr–May, have started purchasing
- A significant downward price correction is unlikely, due to a production shortage and a tight stock situation
- We could see good buying interest on any price dips


Turmeric harvest in Tamil Nadu, India
Near Term View
- Downside from the current price seems to be limited. Buyers should cover their near-medium term requirement.
Crop & Market Scenario
- Harvest is finished and arrivals have started coming in from all growing regions since mid-March
- Unjha market was closed for a week due to the number of Covid-19 cases caused by a second wave in Gujarat
- CY21 output is down compared to last year, due to marginally lower acreage and a drop in yields
- Conventional cumin prices have increased by 5% - 6%
- EU pesticide compliant cumin procurement started in mid-March and will continue onward
- There are concerns of a decrease in domestic demand due to the second wave linked lockdown restrictions
Crop & Market Scenario
- Carry out stock this year is less than it has been the last three years
- CY21 crop output is similar to last year
- Prices have been stable in the last few weeks
- Similar to cumin, there are concerns of slowdown in domestic demand due to the lockdown restrictions
- Prices are expected to remain stable