Spice market update: heavy rainfall affects trade
July 9, 2020 at 3:31 PM ,
Der AUDITOR
Cumin
Due to the rather sluggish trading activities, cumin prices remain at a stable level. Market players reckon that there could be slight price increases in the coming weeks, as arrivals will decline. The areas around Saurashtra and Kutch have seen rainfall ten times higher than normally known for this time of year, which has restricted trade on local markets. Demand from the important consumer country China has fallen and farmers are holding back some of their supplies to support prices. Grade A cumin is at USD 1,987 per metric tonne, which is a good USD 100 per metric tonne above last week's price.
Coriander seeds
After the coriander prices had initially risen, more producers offered their goods, so that there are now price reductions due to the high supply. Strong rainfall in Gujarat, which is curbing trade, is also contributing to this. In general, there is relatively little movement in the market. Coriander, Eagle, 5% split is currently at USD 870 per metric tonne, which represents a price drop of USD 30 per metric tonne compared to last week.
Turmeric
As the infrastructure in India is weakened by the coronavirus pandemic, there are difficulties in supplying local markets with goods. This is causing prices on the so-called mandis to rise, while at the same time there is high demand, both domestically and for exports. Bangladesh in particular is currently a good customer. Unfortunately, turmeric from Nizamabad cannot convince with its quality this season, which is mainly due to the too high moisture content. Turmeric, salem, double polished currently costs USD 945 per metric tonne and thus shows a slight price increase.
Chilli
After the closure of some local markets due to frequent Covid-19 infections, the chili market experienced significant price reductions after the reopening. Weak demand meets a large quantity of supplies, putting prices under double pressure. Due to the coronavirus pandemic, some traders are not personally daring to enter local markets. Only the spice manufacturers are active on the market. There is hardly any demand for exports, which market players attribute primarily to the poor quality of the goods. Chili, S4, stemless cost USD 2,005 per metric tonne this week compared to USD 2,105 per metric tonne last week.
Cardamom
The coronavirus crisis continues to show its effects on the cardamom market. Support is coming at least from the export side, as Saudi Arabia has resumed imports and the Gulf States are also showing satisfactory buying interest. Domestic demand is stable, especially in southwestern India, but could be better in general. Especially in the large cities of Delhi and Mumbai there is hardly any interest. The price trend is currently fluctuating, mainly due to the uncertainties caused by the pandemic. With little support for the market, prices continue to fall this week and are currently at USD 31,150 per metric tonne.
Black pepper
Rising arrivals are putting the pepper prices under pressure. The farmers, who have partially held back their supplies, are now releasing them for sale for financial reasons. They hope that the upcoming festival season will stimulate demand. The extent to which the Coronavirus pandemic will lead to longer-term measures cannot yet be foreseen. According to market players, the import of cheap pepper from Sri Lanka may also cause new problems, although the government has already taken measures and, above all, has largely prevented illegal trade. The price of black pepper, 500 GL is at USD 4,595 per metric tonne this week, which corresponds to a price reduction of USD 80 per metric tonne compared to last week.
Attached Files
View related articles
