Spices Insights for August 19, 2016

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  • Red Chilli prices witnessed a steady trend at the benchmark Guntur market today as buyers turned sideline after sharp increase in sowing. Arrivals were in the range of 25000-30000 bags from 50000 bags yesterday.
  • Hardly any major buying is witnessed in the spot Red Chilli market. Buyers are only buying hand-to-mouth.
  • Red Chilli sowing in Andhra Pradesh as on August 17 reached at 53,000 hectares versus 26,000 hectares same period a year ago. Sowing progress is likely to keep prices under pressure in the days to come.
  • Jeera prices improved at the benchmark Unjha market of Gujarat due to lower supply, increased buying and firm futures. Buying in recent times was subdued due to monsoon showers.
  • Jeera supply in the market has dropped in the recent times to 1,500-2,000 bags (55 kg each) as farmers and stockists are reluctant to offload their produce at lower level.
  • Total available Jeera stock in the market is unlikely to meet the demand until new crop arrives in March. As well, China is likely to be a major buyer of Indian Jeera this year.
  • As per trade source, acreage under Jeera in Rajasthan expected to rise to around 4,00,000 hectares in the 2016-17 Rabi season, from 3,75,000 hectares last year, due to record high prices of the spice.
  • The stocks in the country is poor due to lower production this season, which has prompted stockists and farmers to hold their produce as they anticipate Jeera prices improve sooner or later.
  • Turmeric prices declined in Erode market today in the absence of demand, whereas it ruled mostly flat in other major markets across the country.
  • Demand in Turmeric has turned dull after good sowing in producing states followed by favorable weather for its growth. Further, the sellers are mainly liquidating inferior grade stocks in the market, which has weighed on prices.
  • Turmeric acreage in Telangana as on August 17 rose 15.4% at 45,000 hectares as compared to 39,000 hectares last year. Sowing of Turmeric is over in 93% of normal area and up by 110% of normal sowing area. Acreage in Andhra Pradesh stood at 11,000 hectares versus 10,000 hectares previous year.
  • Turmeric market is likely to come under pressure as reports of sowing in major producing states indicate higher production for the season. India‚Äôs Turmeric acreage in 2016-17 likely to increase by 25-30% compared to previous year.
  • If the weather holds good for next two months, then it will pressurize Turmeric prices, which may go down to Rs 7,800 per quintal levels.

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