Market Report – July 2022
Chilly arrivals to the markets have seen a down trend and the prices for all variety chilies have increased. Export demand and aggressive buying by powder manufacturers and speculators pushed the market up immediately after the season, prices would likely to move up further.
Red Chilly sowing area may go down as farmers may shift to other alternative crops like Cotton and Pulses.
Red Chilly acreage is likely to go down this season. Red Chilly nursery activities have slowly started after receiving rainfall recently. Chilly seed sowing at nurseries have started and transplanting of seedlings to farms will start from August onwards. Since Horticulture Department in Andhra Pradesh and Telangana have advised all chilly growers to limit chilly cultivation due to Western thrips presence at farms.
Market realization from other competitive crops like Cotton, Maize is higher this season compared to last year.
Forecast: The Chilly prices will be on an upward trend this year and expected to remain in the higher levels going forward as well.
Turmeric harvesting is complete in all producing states of India.
Turmeric sowing for next season has already started in southern part of India after the initial monsoon showers. Turmeric sowing activity is lower by 30% in the current period. In Tamil Nadu and Karnataka sowing areas may increase in current year and as of now 50% sowing has been completed as growing regions received good rainfall. In Nizamabad, Turmeric sowing completed around 40% till now.
Forecast: Crop availability & Price are stable at the moment
India's coriander crops were affected by extreme heat, resulting in a scarcity of coriander supply.
High input costs, such as energy and fertilizer, are also huge challenges for Indian coriander growers. The major producing regions of Indian coriander, Gujarat, Rajasthan and Madhya Pradesh were produced 40% lower crop compared to previous year. That reason led the Indian coriander price to surge in the current season.
The current market trading at firm and the increased price trend is expected to continue to be same in the coming few months.
Forecast: - Coriander prices will have an upward trend till the next crop season in February.
Strong demand from Asian countries supported to sustain the continuous bullish trend in Cumin. Price of cumin seed in India has a positive trend throughout year 2022.
Cumin acreage is down by 21% compared to last year, with a reduction of 40% in India's major producing areas. Cumin acreage in India has dropped since farmers have migrated to mustard and chickpea crops, which appear to be more profitable than cumin, as well as weather extremes such as heavy rains followed by heat waves.
As a result, production in crop year 2022 is down by 40% as compared with the last year 2021.
Recommendations: - Cumin Prices will have an upward trend
Indian black pepper prices were stable due to good stocks from last season and less export demand.
Pepper harvesting in Indonesia is going on in full swing. Incessant rains throughout producing regions have delayed the post-harvest operations. Pepper crop is reported to be short during this season.
White pepper light berry prices increased continuously due to less stocks and high domestic demand.
Pepper prices in Vietnam domestic markets were slightly down during June because of less export demand and good arrivals from new crop. However, in international markets, Vietnam pepper prices have shown a steady to firm trend.
Sri Lankan Scenario
Pepper harvesting in Sri Lanka is going on in all the producing regions. Green pepper harvesting, drying and logistics are still a big challenge in Sri Lanka due to the economy crisis and fuel shortage. Black pepper availability in Sri Lankan domestic markets has increased as farmers have started to sell off their produce to buy essential commodities. Prices are expected to be stable in the medium term, but very higher compared to last year.
Forecast: Black & White Pepper prices will be on a price increase
Nutmeg & Mace
Nutmeg and Mace harvesting is started in India. Arrivals are limited. As per the latest information, the arrivals are delayed and expected to continue with lower arrivals throughout the season.
The demand is strong from the domestic manufactures as other origins have higher prices and lower availability.
Forecast: Nutmeg & Mace prices will be on a raise and will be on an increase during 2022.
Ginger plants are at its vegetative stages in many regions and in some belts seed rhizomes sowing is still going on. Monsoon showers has started in the ginger growing belts.
Fresh ginger prices have firmed up drastically due to off season export demand and demand from domestic vegetable markets. Prices for premium quality dry ginger are steady at domestic markets since people are holding stocks in cold storages. Extraction grade dry ginger prices are also steady.
Forecast: Prices are expected to be steady during medium term.
Disclaimer: The content of this report is provided as general information only and is strictly the opinion and best of the knowledge of its authors. Information is provided without any warranty, expressed or implied. Information is gathered from sources which are believed to be authentic.