Olam SVI’s experts regularly publish supply chain forecasts and critical market intelligence to help its customers.
The Olam SVI Spices MarketReport is regularly published as market conditions surface and actionable data are available, and offers an exclusive analysis of the global production and market situation.
Chili
Chili prices across varieties have increased by 2-5% with increased demand. Major markets started stabilizing after GST introduction with good demand, especially for export.
Sowings at major growing areas is at its peak and initial readings is signaling a likely drop in acreage of 20-25% vs normal. Traditional KOL acreage is likely to drop 50% vs normal with the scanty rainfall at Haveri and Gadag areas. Current acreage needs to be monitored further.
Near Term View
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Considering the stock levels across locations and market arrivals, Chili prices are expected to remain steady in the short term and may correct based on the progression of sowings and weather conditions.
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Price Driving Factors To Be Watched
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Chili sowings at major growing areas
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Pests and diseases
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Weather conditions
Turmeric
Turmeric prices remains steady in August for most varieties and origins. Good rain fall across the growing areas with renewed late sowing interest, especially in Tamil Nadu, influenced the market sentiments.
Forthcoming local festival demand and renewed export buying at good parities supported the price levels. Traders and farmers are holding onto better price expectations for October.
Near Term View
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Advisable to cover the near requirements at current levels on any dips especially for best quality, high CC varieties requirements
Cumin
Jeera arrivals remain better vs last year. The pace of field/ farmers stock liquidation is better due to prevailing attractive price levels in the last 2 months. Syrian prices are reportedly gone up due to comparatively low output. Trade is of the view to see record prices in cumin this year due to low inventory levels.
Near Term View
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Prices seems to be stabilized at current levels and are likely to be bullish for near term, especially due to export demand on account of Syrian factor.
Coriander
Arrivals remain steady across Rajasthan, MP and Gujarat in August, with sluggish demand during August
Near Tern View
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Lack of demand can further impact the price trends
Black Pepper
Indian Black Pepper prices corrected down almost 5% from last month. This price correction is mainly on news of cheaper imported pepper from Vietnam and Sri Lanka which is getting traded in domestic channels. Overall better vines formation and berry condition across major growing regions of Kerala & Karnataka is another factor for price correction.
Near - Medium Term View
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Indian Black Pepper is likely to trade slightly lower for near-medium term for MG1, but for premium varieties may trade steady for near-term
About Olam SVI
With a physical presence in all key global origins, multiple manufacturing facilities, over 50 years of proprietary seed development and culinary applications expertise, one out of three organized users of dried onion and garlic in developed markets relies on Olam SVI for its products and services.