Raisin Market Faces Slowdown Due to Increased Production Surplus Stock and Weak Demand Pressure Prices Down

Mintec Global
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Producers and Stockists Struggle with Excess Supply

The raisin market is experiencing a significant slowdown due to weak local and foreign demand. Producers have seen an 11% increase in goods over the past month, causing stockists to reduce prices. This week, raisin prices dropped by $0,05 to $0,06 per kg, with no expected rise in the near future. Consequently, selling goods at current prices is advisable. In the Sangli Tasgaon line of Maharashtra, the raisin crop has increased by 36% to 37%, with an abundance of grapes but lower quality. Additionally, large quantities of old stock are available across producer, distributor, and consumer markets, further pressuring prices.

Stockists Lower Prices to Clear Excess Inventory

Increased sales from the Sangli Tasgaon line have directed low-quality raisins to Bihar, Bengal, and Orissa at lower prices. These raisins are consumed in Patna, Bhagalpur, Muzaffarpur, Darbhanga, Gaya, Kolkata, Adra, Bandel, and Durgapur. Medium-quality goods remain abundant in UP, with sellers from Kanpur and Lucknow showing interest. Business in Agra remains low, and Rajasthan’s Jaipur Bikaner line stocks are sold cheaply. In Delhi NCR, Indian green raisins are priced between $1,08 to $2,52 per kg depending on quality. The trade of yellow raisins is decreasing.

No Significant Price Increase Expected in the Near Future

With weddings halted for the next two months and a lack of significant business, the current price levels of raisins are likely to remain stable. It has been nearly four months since the raisin crop was harvested, and stock is now entering the market. Last year’s price rise led to early purchases from Punjab, Himachal, Haryana, and Rajasthan, resulting in stuck inventory. Light goods sent to Bihar and Jharkhand struggle due to the absence of weddings. Given these circumstances, a rise in raisin prices is unlikely, but further declines are also not expected as prices have reached their lowest level.

The raisin market is currently under pressure due to increased production and weak demand, both locally and internationally. Despite the current low prices, significant price increases are not expected in the near future. Producers and traders are advised to sell at current prices to avoid potential losses.