While the cumin sowing in Rajasthan is at the same level as last year, market players expect to sow about 15-20% less cumin in Gujarat. In addition, sowing will begin later than usual, as weather experts expect the monsoon to end late. As the coronavirus pandemic has hit many export destinations, exports have declined by almost 60%. Due to the monsoon some ports are still closed, which further delays exports. Prices continue to rise, mainly due to increased demand from stockists. Grade A cumin costs USD 1,905 per metric tonne this week.
Although arrivals are low, coriander prices continue to fall due to almost no demand. There is no pressure on local markets either, as parts of India are still under lockdown. Only on the market in New Delhi, slight price increases can be observed. Coriander, Eagle, 5% Split is trading at USD 760 per metric tonne this week, which is USD 10 per metric tonne below last week's price.
Prices have risen on the futures market, but remain at last week's level on the spot market. Market players report that domestic demand is increasing again, which is causing prices on the local markets to rise slightly. The buying interest of the pharmaceutical industry is also slowly rising again. A major coffee chain in India has added turmeric latte to its product range to strengthen the immune system, thus becoming another major buyer. Turmeric, Salem, Double Polished is traded at USD 860 per metric tonne.
While the scarce demand has brought down the prices for red chilli in Warangal, they are trading in a stable range on the Guntur market despite the weak season. In the overall picture, however, a declining market trend can be observed due to the low buying interest. Traders reckon that this situation will not change in the coming days. Currently, chili, S4, stemless cost USD 2,060 per metric tonne, which corresponds to a price reduction of USD 110 per metric tonne compared to last week.
Although the price of cardamom remains stable at a low level, there is little demand from stockists. Futures are also 1% lower than initially expected in the prospect of a large new crop. Cardamom, 8 mm, costs USD 41,890 per metric tonne and has therefore not changed in price since last week.
Farmers are still in no hurry to sell their goods as they are reassured by high demand from Tamil Nadu traders. However, some farmers and traders with limited storage facilities are now making their goods available to the market. Stockists prefer to wait and see, as end consumers are currently buying fewer spices due to the lockdown. Pepper farmers have, however, contacted the responsible spice authority so that further steps can be taken against the illegal import of pepper from Sri Lanka. Prices for black pepper, 500 GL remain stable at a level of USD 5,005 per metric tonne.