India: The rupee is driving traders mad
May 15, 2017 at 11:38 AM ,
Der AUDITOR
While excessively low prices are driving the farmers to despair, it is currently very difficult for exporters to sell their products abroad. At least the Middle East is offering a ray of hope.
Cumin
Cumin went through a real downwards spiral. However, analysts expect a turnaround soon since the export market is buzzing, which should drive up the prices in the next few days. In contrast, other market players think that the pressure on farmers to sell is increasing, which should slow down the price increase. Moreover, there are not enough arrivals to confirm the official crop estimates, which seem to be too high. The prices for cumin, Grade A, 99% purity dropped from 2,930 USD/mt to 2,830 USD/mt FOB.
Coriander
The rising imports of coriander are putting a frown on the faces of market players in India. The situation is so dramatic that the NCDEX even increased the profit margins on sales to reduce speculations. High-quality products are also slowly starting to run low. Indian traders are counting on the Middle East, where the demand is expected to increase before Ramadan. Coriander, Eagle, Split 5% was quoted at a level of 965-980 USD/mt FOB.
Cardamom
Aggressive acquisition strategies in Northern India have really made the prices for coriander rise. Moreover, farmers are speculating for higher prices. However, this does not seem likely at present, as market rumours indicate that the harvest will begin early and will probably cause significant pressure on the prices. But the demand from Saudi Arabia is supposed to increase before Ramadan, which should dampen the decent. The prices for cardamom, 8 mm increased from 25,120 EUR/mt to 25,370 EUR/mt FOB.
Chilli
The farmers are desperate. Although the government announced that it would purchase 122,000 mt, these measures have not been implemented yet, so that the farmers are forced to sell at much lower prices. Moreover, the demand for red chillies is not that great. Chilli, S4, without stem is quoted at a level of 1,370-1,380 EUR/mt FOB.
Turmeric
The main growing region, Andhra Pradesh, can rejoice about an excellent crop. According to official estimates, this year's production should reach 155,000 mt. It was much lower last season at 121,000 mt. However, this joy is currently overshadowed by low demand, which is mainly attributed to the exchange rate. The prices for Salem Double Polished turmeric dropped from 1,045 USD/mt to 1,035 USD/mt FOB.
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