Indian Spices Market Report- Late July 2020

• Buyers have begun to refrain from market participation due to the worsening Covid-19 situation, except for good quality varieties. Overall, we could experience weak to slow demand
• Lack of sufficient labor in cold storages is also affecting market operations
• Sluggish demand seen from export and domestic market segments, except from Bangladesh
• Guntur stock is roughly 230K MT
• Sowing across major growing regions has started and is likely to be completed by mid-August
• Traditional areas of Karnataka have completed 60% of their planting area
• Madhya Pradesh is at vegetative to flowering stage with increased acreage of about 15% compared to last year

Nursery planting activities

Prices are expected to soften between 5% - 10% for hybrids

• Demand from both domestic and export markets, considering the coming festive season
• Weather conditions
• Cash flow in the market

• Arrivals increased across major markets during the end of June, but have now slowed down due to worsening Covid-19 situations across major origins
• We have seen aggressive buying from Bangladesh and the Middle East until the end of June, with demand slowing down the 1st week of July
• Favorable weather conditions are supporting the sowing activities across origins in India
• 75% of planting in Maharashtra and Telangana have been completed and 50 - 60% has been planted across Tamil Nadu and Andhra Pradesh

• Prices are being supported at the current levels and are likely to continue for the near term

• Monsoon progress and sowing status from July - August
• Export and domestic demand

• Production is up compared to last year
• Market yards have started functioning with daily auctions
• Daily arrivals dropped to 1000 - 1500MT due to rains and field preparation activities by farmers for Kharif crop
• Rainfall is normal in key growing regions so far
• Conventional prices have been stable in the last few weeks
• EU compliant prices are firm, due to less availability