Spice market update: price reductions on all markets

Cumin

The number of corona-infections in India continues to rise dramatically and the consequences of this do not stop at the cumin market. For example, the Mandi in Unjha, the largest local market for cumin trade, has been temporarily closed. Overall, there is hardly any movement in trading activities and export demand is stagnating. This also leads to a steady downward trend in prices. Grade A cumin is at USD 1,918 per metric tonne this week, almost EUR 60 per metric tonne below last week's price. Market players are currently expecting the Unjha mandi to open on 3 August and trading to pick up again.

Coriander seeds

Although more coriander could be harvested in Gujarat than last year, yields in Rajasthan and Madhya Pradesh declined, so that overall less goods are available. This initially caused prices to decline, but farmers then held back their supplies and sales declined again. Nevertheless, the market is also under pressure due to overstock supplies and sufficient available goods and much will depend on how export demand develops as a result of the coronavirus pandemic. Due to heavy rainfall and flooding, transports to Bihar, Nepal, Assam and Bengal are currently suspended. Market players expect prices to stabilise only if export demand increases again. Currently, coriander, Eagle, 5% split costs USD 840 per metric tonne compared to USD 895 per metric tonne last week.

Turmeric

Weak demand and the prospect of a record crop are causing prices to fall on the turmeric market. The turmeric futures are also very volatile at present, as future developments are extremely difficult to predict due to the continuously increasing coronavirus infections. Although the quality of the goods is convincing, spice manufacturers have also stopped buying for the time being, as their own work is currently severely restricted by the pandemic situation. Turmeric, Salem, double polished is currently trading at USD 855 per metric tonne.

Chilli

After the mandis in Andhra Pradesh reopened on 27 July, 70,000 bags of chilli from the warehouses were on sale, initially at the last traded price. Farmers are running out of goods and the traders are not willing to lower the prices of the chilli in the warehouses at this time. Most business is currently done in the warehouses themselves, as not all mandis have been reopened yet, only the exporters are active in the market. Market players are reporting an extended sowing of red chilli in Gujarat, which has received good rainfall in the past few days and should develop promisingly under these circumstances. Chili, S4, stemless currently costs USD 1,895 per metric tonne.

Cardamom

Cardamom spot prices have fallen by over USD 1,000 per metric tonne this week due to increased production meeting weak demand. The new crop has now arrived on the market and market players expect an available quantity of 23,000 metric tonnes, which is an increase of 40% over last year. Concerns about the coronavirus pandemic are causing buyers to hesitate further and as a precautionary measure, cardamom auctions are currently only held on three days a week. Cardamom, 8 mm, currently costs USD 28,770 per metric tonne.

Black pepper

After the price increases of recent weeks, buying interest on the pepper market has now waned again. Especially traders who do not have the possibility to store the goods professionally are still offering them for sale. Market players expect prices to rise again in the coming days, as heavy rainfall and flooding make trading and transport more difficult. Further market closures due to the Covid-19 pandemic could cause additional difficulties. Black pepper, 500 GL is currently trading at USD 4,455 per metric tonne, down USD 180 per metric tonne from last week.