Demand for better harvests is sluggish, outlook for Indian spices is bearish

On April 27th, futures contracts for all spices in India (except coriander seeds) fell at the close. The country's traders said that the National Commodity and Derivatives Exchange's fennel seed contract closed lower, but the reason is unknown, because the benchmark market Unjha is closed due to epidemic blockade measures.

 

The long-term outlook for Indian spices is bearish because the harvest is expected to increase this year and export demand is sluggish.

 

Recently, the Agricultural Produce Marketing Committee of Unjha, Gujarat, India, has allowed licensed traders to resume processing, while allowing them to sell agricultural products in markets or warehouses to ensure supply to the retail market during the blockade. .

 

Traders said, but because the government did not allow farmers to bring agricultural products to the market, auction activities were suspended and physical transactions could not be carried out.

 

On the same day, Indian coriander seed futures closed up 1%, due to a decrease in arrivals in Ramganj, the main spot market in Rajasthan. The arrival volume on the market is 5,000 bags (1 bag = 45 kg), which is lower than the 7,000 bags last Saturday.

 

However, traders say that the price of coriander seeds is stable in Ramganj. The coriander seed variety in Badami town, Karnataka is priced at Rs 6,600 per 100 kg, while the eagle variety is priced at Rs 6,900.

 

Turmeric futures ended lower because the southwest monsoon is expected to be normal and the next season's harvest may be higher. Traders say that the market's weak demand for spices has depressed prices.

 

Traders also said that due to profit cash and sluggish demand, the April Multi Commodity Exchange's April peppermint oil futures contract closed down.

 

Due to the nationwide blockade, demand from Indian wholesale buyers was weak, and the cardamom futures contract in June closed lower. Nishant Varghese, head of the operations team at Kancor Ingredients, a food raw material company owned by Mannes, France, said the price of cardamom has also declined due to favorable weather conditions and promising harvest prospects for the next season.