Indian Spices Market Report- July 2020
Chilli
Crop & Market Scenario
- Harvest is now complete and a majority of the stock has been moved to cold storages
- Guntur market re-opened on June 8th after lockdown
- Total production is estimated to be approx. 25% better than last year, with low carry forward stock
- Stocks at Guntur cold storage have increased by 30% over last year, with major stock belonging to growers
- Demand is normal from both domestic and export markets and prices are firm for best qualities
- SW monsoon has entered on time and growing regions are getting good showers
- Land preparation activities have started across areas in Andhra, Telangana and Karnataka regions
- The overall chili cropping area is expected to increase by 20% next season
- Madhya Pradesh is expected to increase by 15% more than last year. The crop is at the vegetative stage
- Sowings at Maharashtra are happening now and are expected to increase by 10-15% compared to last year
Near Term View
Prices are likely to be stable to weak
Major Varieties Price Trend - Guntur Market
Factors to Watch
- Domestic and export demand
- Quality stock availability at coldstores
- Chinese demand
Crop & Market Scenario
- Despite a delay caused by the covid-19 lockdown measures, harvest is now complete
- Major markets opened in the 1st week of June
- Arrivals increased across major markets
- Prices were supported at lower levels due to renewed buying interest from both export & domestic segments
- Prices moved up by almost 7 - 8% in the last couple days
- Farmers are not showing much interest in releasing their stock at lower price levels
- SW Monsoon has entered on time across growing regions
- Sowing started at the end of May in Maharashtra and Telangana. It is about half way complete
Near Term View
- Prices are supported at the current levels and are likely to continue
Turmeric
Crop & Market Scenario
- Production is up compared to last year
- Market yards have started functioning and auctions are conducted on alternate days in key markets
- Daily arrivals have been in the 2,000 - 2,500MT range and production is up compared to last year
- Conventional cumin prices have been range bound in the last few weeks
- Processing activities and port operations have picked up pace with the easing of lockdown restrictions across key origins
Crop & Market Scenario
- While carry in stocks are lower compared to last year, production is up
- The overall supply is marginally down vs last year
- Major market yards have started functioning and daily arrivals have been around 400 - 500MT
- Prices were stable during the last few weeks due to good arrivals and weak domestic demand
- Processing activities have picked up pace due to easing of lockdown restrictions across key origins