Indian Spices Market Report- October 2019
Chilli
Crop & Market Scenario
- Prices across markets have shown a mixed trend from mid September to October with sluggish demand
- Quality stock availability is comparatively low. The arrival of new Chinese crops has also impacted the demand
- Guntur cold storage stock availability has come down to around 56,999 MT. Total stock in Andhra, Telangana and Karnataka is around 130 K MT
- Major chili regions of AP Telangana and Karnataka received good rainfall, which has helped fill the reservoirs
- The main harvest is expected to be delayed by 25 days
- Continuous rainfall has damaged the crop in some pockets of MP and Karnataka
- MP harvest arrivals are expected in October and should be better than the previous year
- Sowing in Tamil Nadu has started and the preliminary estimates shows an increase in acreage
Crop at early vegetative stage in major areas
Near Term View
- Prices are likely to remain firm, especially for premium varieties for the next month considering the festive demand
Best Quality Price Levels
Factors to Watch
- Weather and climate conditions during crop period
- Stock availability at consumer centers
- Demand from APAC and domestic front
Crop & Market Scenario
- Arrivals are gradually coming down compared to previous months across markets and sowing activities are almost complete across major origins
- Most growing regions are receiving continuous rainfall
- Major producing states like Maharashtra and Telangana recorded better sowing this year but AP, Tamil Nadu and Karnataka acreage is comparatively low vs. last year
- Standing crop remains healthy to date and the yield is expected to be good. Prices corrected down almost 3-4%
- Domestic demand remains sluggish, mainly due to better c/f stock, favorable crop situations and bearish activities in electronic platform
- MFT polished, 3% CC, cleaned, graded medium-best quality is currently trading at INR.67-70/KG price range at origin
Near Term View
- Prices are likely to be range-bound for near term
- Can cover near-medium term exposure at current levels or any dips for quality stock
Factors to Watch
- Mainly festival related demand in October
- Overall financial condition and stock activity
- Climatic conditions across growing regions from Oct. - Nov.
- Electronic counter activities
90-100 days old Tumeric field
Turmeric
Crop & Market Scenario
- Daily average arrivals during September in Unjha were approximately 350MT vs 250MT in the same period last year
- Conventional quality prices softened by 3-4% last month due to weak demand. YTD exports have been nearly 10% lower compared to the same period last year
- EU pesticide compliant quality prices remained firm due to less availability, caused by spraying of pesticides
- Liquidation of conventional quality stock occurred due to expectation of enough carry out stock. Good prospects for new crops as a result of rainfall in key growing regions