Week ahead: Spice market may witness firmness on fresh buying at lower level

Mumbai, June 6 (Commoditiescontrol) The domestic spice market is likely to see firmness on fresh buying at lower level this week. Most of the spices have witnessed bearish tone in recent past due to lacklustre buying from the processors and the stockiest while arrivals of some spices increased which pressured their prices to trade in lower range.

With onset of monsoon, the demand for spices from the consumption centres is likely increase while rains may interrupt supply and the effect of any mismatch in demand and regular supply will reflect on the prices of spices, a trade analyst said.

Cumin seed

Cumin seed prices were steady/down in the physical markets and the futures also settled a little lower last week but it will witness improved buying at lower level and overall market trend is expected to remain firm, a trade analyst anticipated. They have to say that lower crop size of cumin seed is a positive factor for uptrend in its prices. At the same time, export demand for cumin seed is likely to increase with opening up the Chinese market as China is a major buyer of Indian spices.

Turmeric

Turmeric prices witnessed mixed trend in the previous week amid moderate demand and supply in the physical markets. However, most of the markets saw steady tone and same was observed at Futures trading. Area under turmeric is expected to increase this year as farmers have received good prices of turmeric and they have taken much interest in its cultivation, a trade analyst said.

Coriander seed

Coriander seed prices were mixed in the physical market last week and more or less similar trend may be observed this week as prices of coriander seed mostly depend on demand and daily supply of the spice in the market yard. With onset of monsoon, the farmers are seen interested in liquidating their stocks of most of the crops as they need money to meet the expenses of kharif crops, a trade analyst said. Hence, higher prices will limit the upsides while demand for coriander seed from the consumption centres is expected to remain firm, supporting positive sentiment.

Red chilli

Red chilli witnessed slack business last week but prices of chilli are likely to improve with increased demand and supply as the trading activities will resume today at Khammam after long gap as the trading remained suspended at Khammam over a fortnight.

The trading is still suspended at the market yard of Guntur, a major trading centre of south India. Guntur market will reopen on June 12, 2022.

The chilli exports in 2021-22 were almost steady in terms of value as per the available data of the Spices Board. India exported 435,724 tonnes worth Rs 6522 crore during April-December 2021-22. However, there is only marginal decline in the value, the volumes are down by 8% compared to the previous year.

As India consumes majority of chillies produced here, a pick-up in the domestic demand after the monsoon could push up the prices further. Regular traders need a variety of chillies for blending which could be in short supply. The quantity of their purchases will depend on the prices.