Week Ahead: Spice complex likely to continue its firm trend

Mumbai, July 4 (Commoditiescontrol) The spice complex remained bullish last week after sluggish activities witnessed in past two months and the prices of major spices like cumin seed, coriander seed and red chilli are likely to see further upsides due to interrupted arrivals. Monsoon has covered entire the country 6 days ahead of its normal schedule and major spice growing belts like Gujarat, Rajasthan and Madhya Pradesh and others are witnessing good rainfall which may affect arrivals of spices in the major trading centres located in these states.

As per the trade analysts, balance-sheet in coriander seed and cumin seed is also tight which will extend support to their prices. The farmers took much interest in cultivation of mustard seed last year and some area of the coriander seed and cumin seed was shifted to mustard following which the area under cumin seed and coriander seed contracted, therefore, production also declined, Ajay Kedia, Director Kedia Advisory said.

At the same time, demand for coriander seed, and cumin seed is likely to improve, he added

Cumin seed

Cumin seed prices rose Rs 50-230 per 20 kg as per the demand for different varieties in the markets of Unjha and Rajkot last week. The physical market witnessed good buying activities and supply remained weak which led a good jump in the prices of cumin seed.

On the National Commodity and Derivatives Exchange, July contract of cumin seed added Rs 530 or 2.5% to end at Rs 21600 per quintal.

China is the major buyer of Indian cumin seed and there was COVID-19 induced interruption during the months of May and June in Chinese market, that’s why export demand for cumin seed were slow but Chinese market is now open and fresh export demand is likely to be seen in coming days, the market analyst said.

Coriander seed

Coriander seed prices remained flat at Kota last week but other markets like Ramganj, Rajkot, Guna, Baran and Kumbhraj witnessed a significant rise by Rs 250-700 per quintal. Interrupted arrivals and increased demand after recent fall in the prices of coriander seed supported its prices. The firmness in spice complex, particularly in the prices of cumin seed underpinned coriander seed, as per the trade analysts.

July contract of coriander seed gained 2.7% on a weekly basis to end Rs 11382 per quintal on the NCDEX.

Turmeric

Turmeric prices gained Rs 100 per quintal in the market of Erode and Duggirala last week. But prices remained unchanged in the benchmark market of Nizamabad and Sangli. Warangal and Keshamundram markets witnessed bearish mood and prices were down by Rs 100-300 per quintal.

Turmeric futures for delivery in July gained 1.5% last week.

As per the trade analysts, area under turmeric is likely to remain lower as the farmers are seen interested in cultivation of soybean and cotton which fetched good prices. But, this doesn’t reflect in its prices as there is adequate stocks of turmeric which keeps the prices under pressure. However, prices of turmeric remained mostly firm in last 15 days.

Red Chilli

Red chilli prices also remained firm last week on good buying activities. Prices of different varieties of red chilli rose Rs 5-20 per kg on a weekly basis. The demand for red chilli is likely to remain firm ahead, an analyst said.