Star Anise Prices Edge Higher as Heat Builds in India and Vietnam

Star anise export prices from Vietnam and India are grinding higher in late April, supported by firm spice markets and intensifying heat in key producing regions. The move is incremental rather than explosive, but sustained weather stress in North India and Northern Vietnam argues for a mildly bullish tone near term. Prices are holding at multi‑week highs with FOB quotations in both Hanoi and New Delhi up around EUR 0.02/kg over the past week. Regional weather patterns are turning hotter and drier, particularly across Delhi–NCR where maximum temperatures above 40°C are forecast through April 28, keeping field work and logistics under pressure. In Vietnam, northern provinces face early-season heat spikes, but scattered showers still appear in short‑range models. Overall, buyers face limited downside in the coming days, while sellers can defend current offer levels.

Prices & Spreads

All prices below are indicative export levels converted to EUR (approx. 1 USD = 0.93 EUR; 1 VND ≈ 0.000037 EUR):

Domestic price reports from Lang Son, a key Vietnamese star anise hub, show farmer-level prices around VND 150,000–250,000/kg (approx. EUR 5.5–9.3/kg) depending on quality, broadly consistent with firmer export offers from Hanoi and confirming an undercurrent of tightness in the local market.

Supply, Demand & Trade Flows

On the demand side, international spice buyers continue to source actively from both India and Vietnam as part of broader seed spice procurement, with recent trade commentary highlighting tightening availability in several spices and bullish sentiment in the complex. While star anise is a relatively small segment, it benefits from this generally firm tone.

For Vietnam, Lang Son’s shift toward organic cultivation for export—especially to China, India and Thailand—suggests a growing premium segment, which aligns with the narrow but persistent price spread between conventional and organic Hanoi FOB offers. India’s latest official trade data underline China and other Asian destinations as key outlets for Indian spices, including star anise within the broader spice basket, reinforcing competition between Indian and Vietnamese origins into regional markets.

Weather Snapshot: IN & VN

India – New Delhi & North India

The India Meteorological Department (IMD) and local media report a heatwave over Delhi–NCR, with maximum temperatures in the 42–44°C range through April 25 and only marginal relief thereafter. Independent 14‑day forecasts keep New Delhi near 43–46°C with almost no rainfall through April 28, indicating hot, dry field and transport conditions. Such heat raises post‑harvest losses and may slow handling and inland logistics rather than affecting standing trees directly.

Vietnam – Hanoi & Northern Highlands

Forecasts for Hanoi show typical late‑April heat, with daytime highs in the mid‑30s °C and intermittent cloud and showers over the next week. Recent local reports and social media commentary describe spells of intense heat across northern Vietnam in April 2026, although conditions around Hanoi have alternated between hot and overcast days. For current dried star anise stocks, this mainly affects storage and transport (risk of quality degradation if poorly ventilated) rather than immediate yield.

Fundamentals & Market Tone

• Short-term supply: No major harvest shock is reported in the last few days, but tight on-farm stocks in Lang Son and firm domestic prices suggest limited producer selling pressure in Vietnam.
• Competing spices: Broader seed spice markets (cumin, coriander, etc.) are experiencing supply constraints and bullish sentiment, which tends to spill over into star anise as buyers look to cover a wider spice basket in India.
• Macro & currency: With no major FX shock in the last three days, recent EUR‑based price moves mainly reflect genuine firmness in origin offers rather than currency noise.
• Weather risk premium: Persistent heatwave warnings in Delhi–NCR and unusually strong April heat across India increase perceived forward risk and help keep Indian FOB offers supported.

3-Day Outlook & Trading Guidance

Indicative 3‑Day Price / Direction (EUR, FOB)

Trading Recommendations (near term)

• Importers / buyers: Consider covering short‑term needs now for Q2–early Q3; upside risk from continued heat in India and firm farmer prices in Vietnam outweighs limited downside over the next week.
• Origin sellers (IN & VN): Hold offers near current levels; only concede small discounts for prompt, large-volume business as no immediate bearish catalyst is visible.
• Traders: Favor light long positions or maintaining inventory in star anise alongside other firm seed spices, with tight risk limits given the modest pace of the recent price rise.

Over the coming three days, expect Hanoi and New Delhi FOB star anise prices to trade in a narrow but slightly upward‑tilting range, with any surprise rainfall or break in the Indian heatwave likely to cap further gains rather than trigger a sharp correction.