Market Report – August 2021
Chilli / Capsicum
Chilli seed sowing and nursery activities have started in all the chilli growing states in India.
Good monsoon has been reported from chilly growing regions like Karnataka, Telangana, Andhra Pradesh, and Tamil Nadu. Chilli seed sowing in traditional chilli growing regions of Karnataka is almost complete.
Market trend: Chilli markets in Andhra Pradesh, Telangana and Karnataka were open during the month and trade is being done with chillies from cold storages.
High pungent variety Teja red and Teja white chillies traded at higher levels after re-opening. The Grinding quality chillies also traded at higher prices.
The crop from MP in October and Karnataka later are also expected to have an impact on prices. Main chilli trading markets like Guntur, Khammam and Warangal recorded higher prices for quality chillies due to good export demand.
Recommendation’s: Prices are expected to remain at higher levels for the upcoming three months
Paprika planting has been completed in traditional paprika growing regions of Byadgi, Haveri, Kundgol and Gadak regions.
The weather conditions have been favorable so far and farmers anticipate a good crop if the favorable weather conditions continue till the end, Harvesting is expected during first half of December.
Market trend: - Paprika prices remained at higher levels due to good demand from North Indian buyers. Prices would stay at higher levels during August due to two reason, limited availability of good KDL chillies and good demand due to festival season.
Recommendations: Paprika prices have shown a price increase and will be on a upward trend till the next crop in December
Turmeric crop is in its vegetative phase in growing states of India. Damages are reported from Maharashtra, Telangana, and Andhra Pradesh due to the recent floods caused by widespread heavy rains. It is too early to predict the crop estimate as of now as it all depends on weather conditions and availability of ground water.
Market trend: Turmeric prices remained at steady levels due to less export demand and good production in all other origins. We expect the prices to remain steady in the long term
Recommendations: Turmeric prices are stable at the moment, consider the logistics and freight factors in which impacts on the availability. Hence recommend to cover for the next 3 months.
Nutmeg & Mace
The Nutmeg production is less by 40% in India during 2021 season and other origins also reported short production as reported earlier. Nutmeg prices across the globe remained at higher levels during July and it is expected to increase during the medium and long term. Prices are expected to stay at higher levels during long term.
Recommendations: Nutmeg/Mace prices are showcasing a price increase and have started to show 5% price increase compared to July, so recommend to cover the material before further price hike.
Celery harvesting in Punjab and Haryana states is almost complete.
Market trend: - Celery availability was good at the Celery markets and prices remained at steady levels. Celery seed prices are expected to stay at steady levels in medium run.
Global Market Scenario
World pepper market has shown mixed outlook during the month. Vietnam and India black pepper local prices had shown steady trend in July while Indonesia and Sri Lanka poised a firm trend due to high domestic demand and limited availability. Crop failure in Sri Lanka and speculation of less production in Indonesia also added the reasons for price increase in both the countries. Indonesian White pepper continued to be firm because of high demand and limited stock availability
Flowering and berry seeing has initiated in major pepper growing regions in India. As per the latest reports, weather conditions are favorable in Kerala and Karnataka, which are the main pepper growing states in India. It is too early to predict the estimates for next season. However, the crop production is expected to be the same as last year if the weather conditions remain favorable.
Black pepper harvesting in Indonesia had been disrupted in many regions due to resurgence of Covid pandemic. The availability was very limited and export demand pushed Indonesian pepper prices firm during July.
The total Vietnam pepper crop this year is expected to be almost same compared to previous year crop. We expect to have a clear crop estimate by first half of September Vietnam pepper exports decreased by 15.6% in volume to 124,000 tons from January to May this year compared to the same period last year.
Sri Lankan Scenario
Pepper harvesting in Sri Lanka has started after the relaxation in lockdown. As reported, Sri Lanka pepper crop this year is expected to be short by more than 40%. Pepper arrivals have started in domestic markets after lockdown. Farmers are not in a hurry to sell their product as they anticipate an increase in price as the availability is less. Recommendations: Black Pepper/White Pepper prices are showcasing a steady price increase. Already witnessing a further 2.5% price increase in the Pepper prices compared to July.
Port Congestions, Transshipment Delays
Sri-Lanka, Singapore, Cochin. Mumbai, Mundra Ports are facing serious issues with container availability, hence resulting in shipment delays and transshipment delays as well. The Port congestion at Durban and Cape Town adds to issues as the operators are not showing major interest to sail to these ports as it takes longer off-loading time. Compared to the previous years, the transit time have increased by an additional 2-3 weeks to get the materials into South Africa.
Freight Charges increased
Freight Charges are increasing on a daily basis, which is now almost unpredictable these days. Adding on the cost of the product, clearances, transportation.