Spices

Spice market update: price collapse on the cardamom market

June 18, 2020 3:46 PM, Der AUDITOR
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GUJARAT. Weekly monitoring with the latest market information from India on cumin, coriander and turmeric, chilli, black pepper and cardamom as well as a price list for more than 70 products.

Cumin

On the cumin market there is great concern about a second wave of Covid-19. Due to the new infections in China, demand here has dropped noticeably, and there is also little buying interest on the Indian domestic market due to ongoing restrictions. Market players reckon that a second wave of infection would have a considerable adverse effect on the markets. In Turkey and Syria, the crop volumes remain at last year's level, while the crop in Afghanistan has turned out well. However, as there is little demand worldwide, cumin prices are falling and are currently at USD 1,865 per metric tonne for grade A cumin.

Coriander seeds

Coriander prices have risen slightly due to declining stocks and good demand from stockists. On the domestic markets, the shortage of goods is not yet so evident, as many of the so-called mandis are still closed due to the lockdown. If arrivals rise again, market players expect price reductions. Compared to last week, however, prices have risen by USD 60 per metric tonne and are currently at USD 820 per metric tonne for coriander, Eagle, 5% split.

Turmeric

While the supplies of turmeric on the spot market declined, demand improved. This is especially true for buying interest in Northern India and export demand. The province of Telangana has even set a new export record with 59,000 metric tonnes. Prices have risen slightly and are at a level of USD 870 per metric tonne for turmeric, Salem, double polished.

Chilli

The spice market in Guntur, where a large quantity of red chilli are traded, has reopened after a two-week lockdown. The chilli have lost about 30% in value since the lockdown, and due to the low quality, traders are still placing few export orders. Demand from China has come to an almost complete standstill due to the new coronavirus infections and trade is currently increasingly concentrated on the domestic market. Meanwhile, farmers have started to cultivate the new crop. Chilli, S4, stemless are trading at USD 2,055 per metric tonne this week.

Cardamom

While arrivals remain average, there has been a sharp drop in demand. For example, the auction house in Thekkady was only able to sell 49 metric tonnes out of 52.5 available metric tonnes. Especially on the North Indian markets there is almost no buying interest. The coronavirus pandemic also causes a noticeable drop in export demand, price reductions are the logical consequence. Cardamom, 8 mm is trading at USD 32,940 per metric tonne this week, which is USD 8,950 per metric tonne less than last week.

Black Pepper

In contrast to many other products, demand for black pepper has increased over the past two months. As a result, prices in Vietnam went up by up to USD 600 per metric tonne within a few weeks as China alone bought 20,000 metric tonnes after the end of the lockdown. Indonesia is expected to have a 20% lower crop, but the harvesting process is still in full swing. In India, both export and domestic demand increased; here, prices for black pepper, 500 GL are holding steady at USD 5,005 per metric tonne.

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