Spices

India: A country governed by chaos?

November 11, 2016 at 9:25 AM , Der AUDITOR
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GUJARAT. Trade has almost come to a complete standstill and concerns are being voiced that there will be a run on the banks, which will lead to ultimate chaos.

The government in India has withdrawn RS 500 and RS 1000 currency notes and introduced a withdrawal limit of Rs 20,000. Many markets remained closed this week. The cardamom growers are aprticularl concerned since the new withdrawal limit will make it impossible fort hem to pay their labourers leavin them with no other option but to stop working.

Cumin
With 60,907 mt exported in April-August this year‘s figures have increased by a stunning 62% as compared to last year. In August exports increased by 65% month-on-month and 65.7% year-on-year, namely to 9,003 mt. Analysts reckon that cumin will trade sideways due to profit bookings, the slow start to Rabi sowing and lower stocks. In addition, reports of a rise in demand may also support prices. Cumin, A Grade 99% is currently trading on a level of 2760-2785 USD/mt FOB.

Coriander
Russia has certainly displaced India as largest exporter. Exports from India have significantly dropped by 33% to 10,300 mt in April-June. The lack of smaller denomnation notes have given rise to concerns that trading may be limited at the spot markets. Moreover, the farmers may lack encouragement to sell their products. The drop in acreage in the Rabi sowing season is likely to give a rise to prices. Coriander, Eagle 5% Split is currently trading on a level of 1,172-1,182 USD/mt FOB

Turmeric
This week, the expected rise in production due to increased acreage and subdued export demand have led to a decrease in price. The situation may, hwoever, change soon as upcountry buyers tend to purchase turmeric towards the end of the season. Supplies are currently of medium and low quality, wich is likely to pressurize prices until the new crop arrives.

Cardamom
The demonetization has lead to a completely stop in trading. Trade is, however expected to resume very soon. Concerns over a sharp decline in output is expected to reverse the current negative trend. Cardamom, 8 mm is currently trading for 189,000-190,000 USD/mt FOB.

Black pepper
The lack of rainfall in April-May has reduced the size of crop, but prospects are more promising in Vietnam. The anticipated decline in production along with stock releases is likely to keep the prices steady to down.

Please find attached the current prices.

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Prices for spices

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