Market Report – June & July 2021
Chilli / Capsicum
Chilli harvesting in India is complete and arrivals from the new crop to domestic markets are reduced. In many growing regions farmers have started land preparation for the next crop cultivation:
- The nursery activities in the month of June – July.
- Transplantation happens in August – September.
It is reported that 30 million bags of carry forward stock of dry chillies are currently stored in cold storage units.
Chilli markets have re-opened in the third week of June after a closure of three weeks. Prices remained at higher levels for good quality chilies.
Recommendations: Cover your requirement’s with Agro-Mills long term as the season is over and prices are expected to increase.
Farmers have started land preparations in traditional paprika growing areas of Haveri and Gadak districts after the first monsoon showers.
Normally farmers cultivate paprika either through broadcasting or the seedling transplantation method. In traditional rainfed regions, most of the farmers follow seed broadcasting method.
Seed sowing and transplantation in many areas is expected to be completed by mid-July and harvesting will start during end of November or early December.
Current paprika arrivals are from cold storages and prices remained at higher levels due to off season purchases and demand from North Indian buyers.
Recommendations: Paprika prices are showcasing a price increase and have started to show a 5% price increase compared to June. We recommend to cover the material before there is a further price hike.
Turmeric harvesting in India is complete. Post harvesting operations are in full swing in Maharashtra, Telangana and some of the other North Eastern states. Turmeric prices are almost steady at all main markets in India. As of now, prices have shown a steady trend and an abnormal increase in price is not expected in the medium term.
Panangali and Kocha turmeric availability was limited and prices were almost steady.
Indonesian Turmeric harvesting in Indonesia has started in traditional Ponor - go and Kediri regions. The crop is reported to be short this season and farmers have not started harvesting widely as rains continued even after the rainy season. Farmers are waiting for good sun to harvest, otherwise drying would be a problem and the turmeric will be damaged.
Recommendations: Turmeric prices are stable in the medium term.
Nutmeg & Mace
Nutmeg production is reported to be down in producing countries like India, Sri Lanka and Indonesia.
Indian production is expected to be down by 30 - 40%. Sri Lanka is down by 20% and Indonesian production is expected to be short by 15 – 20%.
Harvesting in main nutmeg producing regions like Manado in Sulawesi and Ambonin Southeast Indonesia, Medan in North Sumatra are expected to start in October onwards.
Nutmeg markets across the globe have shown a steep hike in nutmeg and mace prices. Prices are expected to stay at higher levels.
Recommendations: Nutmeg and Mace prices are showcasing a price increase and have started to display a 15% price increase compared to June. We recommend that you cover the material before further price hikes.
Black pepper markets across the globe are showing a mixed trend. Sri Lanka and India have shown a firm price while Indonesia and Vietnam prices were almost steady during the month. Pepper harvesting in Sri Lanka and Indonesia have started but the overall report is not promising as shortfalls in production are expected. The next Indian black pepper crop is expected in December 2021. It is too early to predict crop conditions.
Black pepper crop harvesting in Indonesia has started in Kalimantan, Sulawesi and Lampung regions. Crop harvesting has been delayed due to increasing corona positive cases and incessant rains which continued at the growing regions during the month.
Hence, harvesting, and post-harvest operations were affected, and secondary sources predict 10 – 15% crop damage in Indonesia from the current season.
An increase in the cost of ocean freight, limited light pepper availability and a shortfall in crop yield influenced the price hike.
It is too early to estimate the 2022 season of black pepper crop in Vietnam. Farmers are now interested in maintaining pepper farms because of the positive outlook in pepper prices. Even though crop reports are yet to come, the estimations are around 180 000 – 200 000 tons produced during next season, if the climatic conditions are favourable. Black pepper availability in Vietnam markets were good and prices have shown a highly fluctuating trend during June 2021. Black pepper light berries were not available in the market and are expected from December 2021 onwards.
Sri Lankan Scenario
Black pepper harvesting in Sri Lanka has started but is delayed by at least one month due to pandemic issues and subsequent lockdowns imposed in the country.
The crop is expected to be short by more than 40% this year and the delay in harvesting has also made the pepper too mature resulting in less availability of light Pepper. Black pepper prices are reported to be increasing due to the shortfall in production and the fact that domestic demand is high.
Recommendations: Black Pepper and White Pepper prices are showcasing a steady price increase. We are already witnessing a 12-15% increase in the pepper prices.