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 downward trend continues with the increased arrivals across markets mainly due to state government's scheme up to Rs.1500 per quintal.
Most of the cold storages across the region are full, which is a real factor pulling back the domestic and export related stocking interest.
Chili harvesting is over across origins and balance of about 5-10% crop is left over in the fields. Chili Pricing for rest of the period is entirely dependent on SW monsoon.
Near-Term View
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Considering the current stock position across locations and huge arrivals in the market, prices are not expected to increase much in the near term future.
Price-Driving Factors To Be Watched:
- Demand from both Domestic and Export markets
- Expected SW monsoon
- Stock flow from cold storages
Turmeric
Indian Turmeric is getting buying support at current levels From the domestic and export segment, especially for best quality materials after touching a 3-year price level and almost correcting down by >30% For MFT varieties. Stockist buying and good export demand continued during the last month. Base prices were declared by AP Government, which the farmers gave some support. Now Farmers from other states like Telangana, Maharashtra and Tamil Nadu are also demanding base price levels
Near Term View
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Stock release trend in May-June will be crucial and is dependent on pre-monsoon showers possible May-June. It is advisable to cover the near term requirements at the current price levels.
Cumin
Jeera market witnessed a drop in arrivals during May vs. April. Harvesting is over across growing belts and Farmers are still holding considerable stock with them. Demand is at par and the physical market is strong despite Cumin losing heavily on NCDEX counters in the last month. Prices for good quality Cumin did not show the drop in accordance with FAQ grade. Stockists are not yet active as the prices are considered to be higher for stocking and the market does not have enough cash liquidity by post demonetization. Cumin quality compared to last year was reported superior due to favorable weather conditions.
Near-Term View
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Weather factor in Syria may push the prices up.
Spot market is expected to remain firm due to continuous demand from Domestic and Export markets.
Coriander
Good arrivals across Rajasthan and MP subsequent to bumper harvest have witnessed price correction in Coriander. Markets crashed on surplus arrivals and low demand.
Near-Term View
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Prices are likely to be at lower levels as there is no demand from local Masala companies, which are considered to be the biggest buyers for Coriander.
Black Pepper
Indian black pepper prices corrected down further on sluggish domestic and Export buying interest. Overall prices dropped approx. 25% from the beginning of the current season, but still remains at a huge disparity with Vietnam. Imports from Vietnam and offers from Sri Lanka further fuelled the Indian bearish sentiments.
Near/Medium-Term View
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Indian black pepper price is likely to be under pressure for near medium 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.
