Spices
Market Update
Q3 2024
Spices Market Update Q3 2024
Dried Onion
United States
The US onion crop harvest is ~75% complete as of late September. Southern CA harvest is complete. Harvesting is currently taking place in Central CA and is projected to continue through October. Northern CA and Oregon/Washington harvest started in early September and is projected to last through November. Heavy rain in early spring impacted the bulb size and overall crop yields are down 6-10%.
Most California reservoirs remain at or above average levels. The Westland’s
Water District has declared a 45% water allocation for agricultural contractors for the 2025 season, which is an improvement from the initial allocation of 35%.


Groundwork for crop year 2025 planting season is taking place. Onion plantings are scheduled to start the first week of October in the Imperial Valley region of California. Growers continue to push back on lower returns due to rising costs of labor, input costs, and fuel. This, combined with higher inventory holding costs due to interest rates, continue to influence costs moving forward. Irradiation costs have risen +5% year-over-year with extended lead times.
Demand for piece fractions, especially chopped, large chopped, diced fractions, micro-sensitive and BI controlled products remain strong, supplies are tight. Availability of powder and granulated are expected to be adequate for normal demand with pricing expected to mirror inflation. Prices for piece fractions and specialties will likely remain elevated.
Forward Outlook
United States
- Potential Supply Constraints: Given the tighter supplies of flake and specialty items, contracting will likely see an upward price adjustment, securing forward coverage early in the season is recommended.
- Powder and Granulated Availability: Availability of powder and granulated onion are adequate to meet normal demand, with potential exceptions for specific sku’s.
- Pricing: Pricing is expected to mirror inflation.
Dried Garlic
United States
Overall US garlic plantings are estimated to be down by 10% compared to last year. The US garlic harvest was delayed by approximately 2 weeks due to adverse weather conditions this summer. Harvest is currently underway with 45% of the crop harvested. Harvest is expected to continue through mid-November. The garlic seed crop for several garlic industry participants was badly damaged during the growing season. This has impacted the availability of both fresh and dehydrated garlic in the current year, causing a supply tightness.
Planting for crop year 2025 is scheduled to begin at the end of September in the Central Valley of CA. Similar to the US onion market, growers continue to resist lower returns due rising costs related to labor, input costs, and fuel.
Customer demand for US garlic has strengthened in the second half of the year. Tighter supplies are anticipated in minced, ground, and granulated fractions. The availability of powder is expected to be adequate to meet normal demand. Prices for minced and granulated remain elevated. Prices for other fractions are expected to mirror inflation.
China
YTD through July, garlic flake export volumes are about 15% higher than PY. YTD garlic flake production quantities are around 100K tons and 100% of flakers have already stopped production resulting in stock continuing to decline.
Based on the current market, garlic flake prices don’t have much room to drop. There is a high possibility prices will start increasing in the coming months. Due to high garlic seed prices, the total planting acreage may not increase this year. We will have a better idea in November.
Forward Outlook
United States
-
Supplies of minced, granulated, roasted granulated and BI controlled fractions are expected to remain tight. Prices for these fractions are expected to remain at elevated levels.
- The supply of powder is expected to be sufficient to meet normal demand.
- Securing forward coverage early in the season is recommended.
Chiles
Green Chiles / Organic Green Chiles
Currently we are 70% complete. Beneficial growing conditions indicate that there will be no shortages or supply interruptions.
Organic green chile crop is complete. Beneficial growing conditions locally allowed us to shore up any shortcomings that we had from the winter organic crop.


Jalapeño / Organic Jalapeño
Currently we are 75% complete. Beneficial growing conditions indicate that there will be no shortages or supply interruptions.
Organic harvest complete. Beneficial growing conditions locally allowed us to
shore up any shortcomings that we had from the winter organic crop.


Red Chiles
As the crop nears full maturity, pods have begun to turn from green to red,
marking the beginning of the harvest in the coming days. Our tentative start date
is late September, commencing in our earliest planted fields. Throughout the
summer, fields were closely monitored, tracking the climatic changes brought on
by the monsoons. Fortunately, the weather patterns were optimal for pepper fruit
set and growth.
Comparable to Mexico, pricing in the US is a sensitive subject for the red and
green industries. As inputs and labor continue to be a concern, the industry
maintains its optimism for the 2024 season.
Vietnam Spices
Pepper
The harvest season in Indonesia is presently at its peak. However, it is anticipated that the influx of arrivals will slowdown in October. The Brazilian harvest has been delayed and is now expected to commence in later half of Sept. There are major concerns regarding the overall production for this year, which has been adversely affected by El Niño.
Following a period of stability between VND 140,000 and VND 145,000
throughout August, the price increased to VND 155,000 at the start of September. The combination of lower stock levels in the origins and sustained demand from destination markets is exerting upward pressure on prices.
Cumulatively as of August, Vietnam has exported 181k tons of pepper of all kinds. Despite China’s absence, export volume decreased by only 3%. North America is the largest destination so far importing 55.2k MT (+47%) followed by Europe 42.9k MT (+43%). Exports to Asia at 32.3k MT is down by 57%.
Cassia
We are currently in High VO season; however, the recent impact of Typhoon Yagi on North Vietnam has caused a complete suspension of harvesting activities. This has led to a delay in the arrival of crop to the market. The weather remains unfavorable, with intermittent rainfall therefore it is anticipated that farmers will resume harvesting operations next month.
Nutmeg
As the Clove harvest in Indonesia comes to a close, attention will now turn to the Nutmeg harvest, which is expected to commence by mid-September.
Ginger
An outbreak of fungal disease destroyed Nigeria's ginger crop in 2023-2024. Due to shortage of supply, prices almost doubled compared to last year. New planting happened in April while harvest is expected to start in September-October.
Indian Spices
Chili
Guntur market is tight for all varieties as arrivals are less due to recent continuous rains. All Chili growing areas in AP, Telangana, Karnataka, Maharashtra, Gujarat and Madhya Pradesh are receiving heavy rains and the continuous rains have led to water logging. 30% area sowing is still pending.
Overall, export increased by 24% over LY and prices are keeping firm due to
domestic and export demand and less availability of good qualities. Farmers and stockists are not interested in selling good qualities, but they are trying to sell their lower grades and last year stocks.
IPM Chili availability continues to be low with prices commanding ~25-30%
premium than conventional Market RM prices. Tobacco survey is going on,
indicating 35% decline in Chili sowing area this year. This will push prices higher for Chili in coming season.
Cumin
Overall stock availability is about 50% higher than LY. While Turkey and Syria’s new cumin crops have started, prices are still unknown. High prices for Turkish crop are expected which will push the exports from India higher. Exports from India were up 55% at the end of August versus LY. China imported major volumes from India in August as the price of China Cumin is much higher due to decline in production by 35-40%.
Material with high moisture has higher availability and major demand is coming from domestic players. Retail grades with less moisture are selling at a premium. Markets are expected to remain stable till sowing reports are released in October which can put pressure on prices.
Coriander
Overall supply is 12% lower, with carry forward stock down by ~28% compared to last year. Overall demand has been slow. No major increase in demand for both exports or domestic is expected in the coming weeks.
Prices are expected to be stable in the short-term with the long-term trend
expected to be bullish. Sowing report in Oct-Nov will be crucial for price
movement as traders will be carrying less stock for 2024-25 season compared to 2023-24 season. Stagnant prices due to limited arrivals of Coriander is currently facing significant challenges in the Indian market. Despite limited arrivals, prices have remained stagnant.
Turmeric
Overall carry forward Turmeric stock is lower by 30% over last year and new crop for 2024 down approximately 33% compared to LY. Sowing in 2024 calculated with seed retention shows increase of area by 30-35%. Crop is 75-85 days old (vegetative stage).
Heavy rainfall reported in Maharashtra, Telangana and AP, crop is submerged in majority of the areas and damage is yet to be accessed. Sowing in Andhra is running behind due to rains. Farmers in Tamil Nadu are holding approximately 10% of crop, Marathwada 5% and other region farmers are not holding any stocks.
IPM crop prices are about 20% higher than conventional market prices. Through July, imports are up +300% over LY and exports are down -10% over LY. Prices are likely to increase due to expected damage of crop and upcoming festive season demand.
Flooding in turmeric fields

