Spices
Market Update
January 30, 2025
Spices Market Update 2025
Chili
The chili crop is at 126 - 143 days (crop cycle 220 - 260 days) and is at the flower formation to fruit ripening stage. The infestation of sucking pests and incidences of Black Thrips have been identified in all regions at 15% - 25%, which is inline with last year.
White chilies are increasing and excess flower drop has been observed. This is due to cloudy weather and unseasonal rains during the fruit formation stage over the past couple weeks.
The first harvest has started in some areas and the crop survey is in progress across all chili growing regions. Better estimation is expected after the survey is completed.
New arrivals are lower and quality is inferior with ~70% of medium grades having high moisture lots.
Guntur Market prices have started to stabilize due to the domestic market demand, the S4 variety has been slow due to inferior quality. The KDL variety has seen strong demand and IPM prices are 30% higher than conventional market prices. Export demand remains stronger for high heat varieties than seed varieties.
Recommendation: Cover now as prices in the new season will depend on yields.


Turmeric
The average turmeric crop is at 169 - 181 days (crop cycle 220 - 250 days) and is in the rhizome development stage. There has been medium to high rainfall and cloudy weather in Tamil Nadu and South Karnataka. Overall, the crop is in good condition across regions, with only minor diseases reported.
The South Karnataka crop yield is estimated to be 5% higher. Early harvest activities, such as leaf cutting and rhizome digging, have begun. While yield surveys are still ongoing, North Karnataka is projected to see a 10% increase.
Recently, turmeric prices have increased +5% due to minimal crop damages, low yield reports, and less availability of good material. IPM crop prices are about 20% higher than conventional prices. Domestic demand is stable and exports have started to pick up. Less availability of good quality material (without infestation) may lead to a rush in buying the new harvested crop.
Recommendation: Cover now and wait until February peak season for Q2 and Q3 requirements.
Turmeric Crop Leaf cutting


Cumin
The cumin crop is at 47 - 67 days (crop cycle 120 - 135 days) and is post sowing. Sowing has been completed in Gujarat and Rajasthan. While acreage in Rajasthan is comparable to last year, Gujarat has seen an 18% decrease. The weather has been suitable for plant growth.
Mid and late sown crops have had good germination rates, with germination issues at 25% - 30% (10% - 15% of the total area). Crop delay is expected. Based on current conditions, yields in Gujarat are expected to be inline with last year. Rajasthan yields may decrease by 10% - 15% due to germination issues and any diseases in January and February will further impact the yields. There has been rain and clouds in parts of Rajasthan and Gujarat supporting vegetative growth. The chance of disease is higher this year versus last year.
Market arrivals in Unjha have decreased from November. The market has been stable and the IPM crop has low availability contributing to stable prices. Export demand increased in December.
Recommendation: Cover now as prices are expected to remain stable. IPM compliant material is highly recommended to cover now for H1/2025 requirements. The inventory pipeline is low which may lead to an increase once arrivals begin.
Cumin crop at Vegetative stage


Coriander
The coriander crop is at 53 - 66 days (crop cycle 120 - 140 days) and is in the process of sowing. Sowing has been completed in Gujarat, Rajasthan, and Madhya Pradesh. Sowing acreage has decreased by 25% in Rajasthan and Madhya Pradesh. The sowing acreage in Gujarat has decreased by 25% compared to the average sowing area over the last three years.
Recent weather has been favorable for vegetative growth, yield clarity will not be available until the end of February. Previous wind and rain across most regions may have impacted the crops. A crop survey is planned to check the sown areas and crop condition.
Arrivals in the Ramganj Mandi (Rajasthan) and Gondal Mandi (Gujarat) Mandi were less in week 52. While export demand has declined, domestic demand has been strong. The difference for premium grades, like Single Parrot, are expected to increase. IPM compliant material availability is constrained which is contributing to stable prices. Coriander prices are expected to be stable in the near term, with the long term trend expected to be bullish.
Recommendation: Cover now for H1/2025 requirements.