Weak Ahead: Domestic spice market likely to see improved activities

Mumbai, June 13 (Commoditiescontrol) The domestic spice market observed mixed trend in prices of different spices like cumin seed, coriander seed, turmeric and red chilli last week and same trend is likely to continue further this week as no major change in the prices of any above spices is seen. However, interrupted arrivals due to rainfall in the particular market will boost their pries. Also, the season of mango is on the last leg and with end of mango season, the consumption demand for vegetables, pulses and non-veg items will increase following which demand for spices will also increase.

Cumin seed

Cumin seed prices gained last week but it is likely to remain in limited range this week as export demand is still subdued. As per the trade analysts, cumin seed prices will remain stable or range-bound until, exports demand does not improve. However, it is unlikely to see downside movement as crop-size is down this year. Most qualities of cumin seed gained Rs 10-20 per bag of 20kg each in the market of Unjha and Rajkot but Best quality and Bombay Bold declined Rs 90 and Rs 40 per 20kg each respectively due to weak demand. Cumin seed futures also declined a bit on the NCDExl

Coriander seed

Coriander seed prices remained in the limited range with some gains in most of the physical markets As per the trade analysts, same trend is likely to continue this week as no major change in the prices of coriander seed is expected in near term. The fluctuation in the prices of coriander seed is seen as per the daily demand and supply. If any market receives higher supplies, prices remain lower and vice-versa.

Like, Kota market witnessed a drop of Rs 200 per quintal in the prices of coriander seed due to slack activities. Prices of Badami and Eagle brands dropped Rs 300 and Rs 400 per quintal respectively in the market of Ramganj, a major trading centre of coriander seed trade as the bulk buyers stayed away.

Coriander seed futures remained almost steady on the NCDEX last week.

Turmeric

Turmeric prices remained mixed in the physical markets amid moderate trade while futures held a tad up. However, the market analysts of the opinion that prices of turmeric may remain firm in the coming sessions as monsoon is in progress and during rainy season demand for turmeric usually remains strong. Some of the markets like Nanded witnessed a jump of over Rs 500 per quintal on a weekly basis. However, downward movement was observed in the other major markets due to weak demand and increased arrivals.

As per the trade sources, liquidity crisis is one the reasons for subdued demand for spices. However, with improved demand, prices are likely to increase in near term, he added.

Turmeric futures for June delivery ended at Rs 8028 on Friday, Rs 24 up on a weekly basis.

Red chilli

Red chilli prices remained bearish last week in the physical market due to weak demand and supply but activities are likely to improve this week as a major trading centre of South India is reopening this week after a long interval. The trade analysts have to say that activities will improve with increased demand and supply but prices are likely to remain in limited range as the buyers are in wait and watch mood. They are buying to meet regular demand only.