Spices: Raging farmers cause wave of destruction
June 2, 2017 at 10:28 AM ,
Der AUDITOR
More than half a million farmers participated in the strike, demanding, among other things, a loan waiver for farmers. If the farmers' strike should go on any longer, large cities like Mumbai, Thane and Nashik could suffer from shortages of milk, fresh fruit, cereals and other agricultural products.
Cumin seeds
Compared to last year, the cumin seed production in 2016/17 should be at least 3% smaller. Because of the weak demand, prices still remained largely stable this week, and lower prices were even reported on the market of Unjha. As soon as the export demand rises, of which market players are firmly convinced, the price development could rapidly change direction because of the smaller crop. Indian cumin seed is being offered at a level of 2,495 EUR/mt FOB.
Coriander
The price collapse this week made traders who purchased at higher prices quite nervous. There are enough new arrivals, which are increasing the pressure on the farmers to sell. At the same time, foreign buyers are holding back with requests. Coriander, 5% split is being offered this week for 727 EUR/mt FOB.
Turmeric
In the next few days, Indian farmers will start sowing. The monsoon rains are particularly important for the crop development. The old crop is running out and the farmers are hesitant to offer at lower prices, but they hope that it would help to boost the sales figures. Turmeric, Finger, Salem, Double Polished is currently being traded for 946 EUR/mt FOB.
Cardamom
The cardamom crop benefited from the rain and traders expect a growth in export demand. The new crop is expected in the middle of June. However, prices have already started to drop, as the Ramadan holiday is significantly curbing the demand from the Middle East. The farmers are willing to sell and there should be sufficient supplies available. Cardamom, 8 mm rose to a level of 22,113 EUR/mt FOB this week.
Black pepper
Sellers have largely withdrawn from the Indian pepper market, causing the prices to rise. The expected rainfall should have a positive effect on the new crop. Imports, from Vietnam amongst others, are available at much lower prices than Indian pepper, making offers even less interesting for many buyers. According to reports, however, imported pepper has a lower density than Indian pepper.
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