Spice Industry in Peril: Drought Threatens Production Across Southern India

Savor the Flavor: A Spicy Snapshot of This Week’s Market Madness

Mintec Global
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Excessive Supply Resulted Panic Selling

In the Indian spice markets, significant fluctuations have been observed across various commodities. Fennel saw a notable increase, with prices rising by approximately $0,72 to $0,84 per kg. Due to heightened market arrivals in Gujarat, Rajasthan, and Madhya Pradesh. However, excessive supply led to panic selling. Resulting in a dramatic price drop of $0,72 to $1,68 per kg depending on quality.

Chili and Cardamom Prices

Red chili experienced an influx in supply by 20-22%, which pressured prices downwards, with Pala quality chili decreasing by $0,24 to $0,30 to settle at around $2,40 to $2,64 per kg. Big cardamom prices also faced a downturn, decreasing by $0,24. Now stabilizing at approximately $17,64 to $17,76 per kg due to speculative selling and profit booking.

Turmeric and Other Spices

Turmeric prices opened at around $1,85 to $1,86 per kg and later fell to $1,79 to $1,80 per kg, reflecting a softening in demand as buyers were scarce. For the next year, turmeric quoted at about $1,82 to $1,83 per kg. Along with the minimal market activity expected.

Additional Spice Insights

Nutmeg prices were adjusted downward by $0,30 due to competitive international pricing, particularly from Indonesia and Colombo, bringing it to about $0,59 per kg. Mace, particularly the Javitri Lal variety, also saw significant price corrections. With high-quality offerings fetching between $21,12 to $22,20 per kg.

Cumin prices retracted by $0,06 to $0,084, closing at $3,12 to $3,14 per kg, influenced by aggressive selling and future trading positioning. Coriander prices mildly increased for Badami quality, adjusting to around $0,98 to $1,00 per kg amid varied market responses.

Cardamom Market Adjustments

Small cardamom had a turbulent week; after an initial rise of $1,80, prices corrected by $0,60, ending at $19,20 to $19,50 per kg. This volatility was linked to changes in export dynamics and local demand patterns.

Black Pepper’s Strategic Pricing

Black pepper prices edged higher by $0,48 due to decreased production in Vietnam, pricing the average quality at $7,68 to $7,74 per kg. This adjustment reflects broader market recalibrations as producers and exporters respond to global supply constraints.

These developments highlight the responsive nature of the spice market to both local and international pressures. Traders and producers continue to navigate a complex landscape influenced by geopolitical shifts, climatic conditions, and evolving consumer preferences.