Geojit Comtrade has come out with its report on spices. According to the research firm, Turmeric production in 2012-13 is expected to be near 50 percent lower compared to last year’s historical high of 90 lakh bags (1bag=70 kg).
Turmeric futures traded higher despite weak trend in major spot markets. However, the prices are likely to decline due to overall subdued demand amid recent rise in prices. Prices had gained earlier due to high demand from stockists and exporters to build their inventories. According to market source, stockists were building inventories to meet export orders in March and April. Turmeric production in 2012-13 is expected to be near 50 percent lower compared to last year’s historical high of 90 lakh bags (1bag=70 kg). On Friday, turmeric arrivals in Erode and Nizamabad were around 4200 bags and 1000 bags respectively. The spot price traded at Rs.5200 -5600 per 100kg.
Jeera futures extended the weak trend due to profit selling at higher levels. The market is closely eyeing the progress of jeera sowing in Gujarat during the current rabi season for fresh cues. However, as per the latest reports from Ministry of Agriculture of Gujarat, the total sowing acreage of jeera as on 3rd December 2012 was reported as 2.21 lakh hectares, up almost 15 percent from same period last year. Still, weak sowing progress in Rajasthan and projected rise in demand from overseas markets along with lower arrivals in major spot market may support the prices. Sowing in Rajasthan have already started and is expected to gain momentum in the coming days. On Friday, jeera arrivals in Unjha were around 5500 bags (1bag=55kg) and the spot price stood steady at Rs.14300 per 100kg.
Pepper futures are expected to ease as arrivals of the crop commence. But, the overall availability of the spice continued to be limited. However, reports of firm demand from North Indian states amid availability of fresh crop may limit sharp fall in prices. On Saturday, the arrivals in major spot market stood at around 10 tonnes and the spot price traded at Rs.38700 per 100kg. In the international market, Indian variety fetched around $7750 per tonne. During Jan-Oct 2012, Malaysia have exported around 8300 tonnes of pepper, comprising 6650 tonnes of black, 1630 tonnes of white and 20 tonnes of green pepper. Compared to last year the export has decreased by around 30 percent. Export of 1077 tonnes in Oct 2012 was the highest during the year.
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