Despite better production, spice prices remain high during the festive season due to the rapid demand in the Corona epidemic. Usually, there is a demand for turmeric, red chilli, black pepper, coriander and cumin in traditional spices. Except turmeric, production of other spices has also been good this year. Production was better in the previous season. Market experts believe that during the Corona epidemic, drug demand for traditional spices has increased rapidly. Due to this, prices are still fast. However, after the new crop comes, the prices of black pepper, cumin, coriander and red chillies may come down.
Cumin: Sustainable demand on limited demand
- Despite the demand for cumin, prices had come down to a five-year low. However, its prices have increased in the last few days. Ajay Kedia, director of research firm Kedia Advisory, says cumin production is expected to increase by 10 per cent from April to March 2020-21 this season, and this time 4.4 million tonnes of cumin may come in the market. Due to high production, its prices came down but limited demand did not let its prices fall further down.
- 80 percent of the world’s cumin is produced in India and in India also, the maximum cumin is produced in Gujarat. This time in Gujarat it was sown in 4.88 lakh hectare, an increase of 40 percent over the previous year. The third advance estimate of cumin production in Gujarat is 3.88 lakh tonnes in 2019-20 season.
- Its export demand has increased rapidly after the lockdown. Demand for Indian cumin has also increased in China, UAE and Vietnam. Apart from this, in the hope of increasing demand for Indian cumin from Europe, its prices are not breaking much. Crop wastage of 25 to 30 per cent cumin in Syria has increased the pressure on Indian cumin. Cumin is currently trading at a price of 14,400. Its prices can go up to 15,000 in a few months. The softening in the sense can only be expected at the next crop.
Turmeric: Monsoon increased prices
- Turmeric is currently at the rate of 5950 and one reason for its increase is that this time the sowing area has declined in Nizamabad and Marathawada regions, whose crop is going to come next year. This time, the area under turmeric has declined by 15-20 percent.
- One of the reasons for the decline in its sowing area is that due to the lack of better prices in the last few years, farmers are turning to other crops. Farmers are shifting to cotton and soybeans. Apart from this, in Andhra Pradesh, about 40 percent turmeric is produced in the country and this time the monsoon has spoiled its crop.
- There is no supply of turmeric as per demand due to reasons such as farmers turning to other crops, declining production and increasing its use as an immunity booster due to Corona epidemic. For this reason turmeric prices have increased.
- Raw turmeric, which is available for 15-20 rupees per kg, is being sold today for 50-60 rupees. According to Ajay Kedia, turmeric can cross 6500 levels within three months and can touch 7200 levels within six months. Only after the next crop comes turmeric prices can be expected to fall.
- According to data from the Spice Board of India, the country produced 9.4 lakh tonnes of turmeric in 2019-20 while 9.6 lakh tonnes of turmeric was produced in 2018-19.
Coriander: Prices did not fall despite excess production
- Coriander is currently at 6800 price. According to the data of Spice Board of India, coriander production has increased this time, despite this the prices have increased. Coriander is mainly used as a dry spice in food and its demand has increased rapidly in the process of unlocking.
- According to Spice Board of India data, the production of coriander is estimated to be 7.6 lakh tonnes in 2019-20, which is much higher than the last time production of 6.01 lakh tonnes in 2018-19.
- Due to the festive season, spice makers are increasing the purchase of coriander, due to which the coriander price is strengthening. Coriander is at the price of 6750 at this time.
- Anuj Gupta, deputy vice president (energy and currency), Angel Broking, says that the way coriander consumption has increased, it may soon touch the 7200 level. Its next crop can be expected only after the next year, in its price.
Red chilli: still more spicy
- Due to the lockdown imposed to prevent the Corona epidemic, demand for spices remained almost constant for a long time, but now when unlocked, the demand has increased rapidly. Due to this, the price has not declined despite the increased production. Red chillies are priced at Rs 8000 per quintal.
- The demand for red chili is high because it is used extensively to enhance the taste.
- Anuj Gupta says that softening in their prices cannot be expected right now and only the next crop can come down. The redness of the red chillies can only increase and it can cross the level of 9500, although it can touch up to 7000 levels when the price softens.
- This time the production of red chillies cannot be said to increase much. Due to this also its expressions have increased. According to the data given on the website of Spice Board of India, the estimated production of red chilli production in 2019-20 is around 17 lakh tonnes as compared to about 16 lakh tonnes in the previous 2018-19.
- The highest production of red chilli is in Andhra Pradesh, Karnataka, Madhya Pradesh and Maharashtra. Of this, the weather has also been killed this time in Andhra Pradesh and Maharashtra.
Black Pepper: Decoction Increased Fever
- Due to Corona epidemic, awareness has increased about increasing the resistance capacity of the people. For this, he started using decoction. Black pepper is also used, among other things. Due to this, the use of black pepper has increased not only in India but also worldwide.
- The base price of black pepper is around 28 thousand, but despite record production at this time it is at around 32 thousand price. Pepper is about 4 thousand more than its normal price.
- Anuj Gupta believes that it can be seen faster now and it can cross the level of 35 thousand. However, on the next crop, it can be expected to soften in its price. Apart from this, it can fall to the level of 30 thousand if the demand is soft.
- According to the government data, there is an estimate of production of 48 thousand tons of pepper in 2018-19. In comparison, 61 thousand tons of pepper production is estimated in 2019-20 this time. The largest production of black pepper is in Karnataka and Kerala.