Weak Ahead: Spice complex likely to see subdued trade at higher prices

MUMBAI, 21 March (Commoditiescontrol) Spice complex witnessed bearish mood last week due to slow demand and regular arrivals. Arrivals of the major spices likely, red chilli, coriander and cumin seed are likely to increase after Holi festivals following which prices of most spices may remain under pressure even this week.

Red chilli

Red chilli prices held nearly flat last week and no major change is expected next week as the stockiest and traders are buying as per their short-time requirements. As per the trade analysts, demand is poor as prices have shot up considerably.

The sharp increase in the price of red chilli was seen due to a virulent attack by a new invasive thrips virus in a major part of Telangana. around 90% of the four lakh acres under red chillies crop in Telangana reportedly damaged by the virus attack. has been completely damaged by the virus. However, demand from pickle industry is expected, that’s why the spice complex is unlikely to see in big fall in chilli prices.

Cumin Seed

Cumin seed market witnessed bearish mood last week due to slow demand and arrival pressure which will continued but prices are unlikely to see more downsides as crop-size is low, said an analyst.

Arrivals pressure is likely to increase in the next 10-15 days following which prices are expected to fall after Holi, said another trade analyst. According to him, some further fall in prices is expected. Due to this, local traders are buying to fulfil the requirement. The activity of speculators in the futures market has started decreasing in cumin seed, due to which there has been a significant decline in the futures market this week. Cumin exports are expected to fall after the re-outbreak of the corona virus in China. Along with this, the pressure on the prices may increase with rising arrival pressure in the spot markets.

(By Commoditiescontrol Bureau; +91-22-40015513)