Expect export demand to rise for Cardamom: Geojit

Geojit Comtrade has come out with its report on spices. The research firm says export demand for Cardamom is expected to rise as the current price is reported to be attractive for overseas buyers.

Pepper futures are seen trading higher due to tight supply amid steady domestic demand. The international market was quiet during the week, since Chinese New Year holidays, particularly in Vietnam, China and Sarawak. According to the latest report from IPC, US imported 62458 tonnes of pepper, as against 68489 tonnes in 2011, down 9 percent. Indonesia was the major supplier of black pepper to the US market, followed by Brazil, Vietnam and India. These four countries account for a share of 98 percent of whole black pepper to the United States. Indonesia strengthened as the most important source for white pepper, followed by Vietnam. In the case of ground pepper, India and Vietnam was the main supplier.

Jeera futures traded with a positive bias on concerns over untimely rains in key producing states of Gujarat and Rajasthan. Spot prices also traded higher due to concerns over adverse weather. The India Meteorological Department has forecasted that a western disturbance would deepen and induce a low-pressure area to form over Rajasthan and its neighbouring areas, leading to heavy rains. Rain/thundershowers would occur at many places over Punjab, Haryana, Delhi, Uttar Pradesh and Madhya Pradesh during next few hours and decrease significantly thereafter. On Saturday, jeera arrivals in Unjha were around 6500 bags (1bag=55kg) and the spot price for the spice traded at Rs.13700 per 100kg. Arrivals of the new crop were near 6500 bags.

Turmeric futures ended in green tailing rise in spot prices. Improvement in domestic demand amid crop concern due to unfavorable climatic conditions supported the price uptrend. Heavy rains battered Andhra Pradesh causing damage to rabi crops. At least 12 districts of Andhra and Telangana regions, including Prakasham, Krishna, Guntur, Nellore, and Karimnagar, were affected due to heavy downpour on Saturday and Sunday followed by unexpected hail storm. At least 9240 tonnes turmeric was damaged in Nizamabad yard and 40 tonnes chilli in Guntur yard. Turmeric arrivals in Erode were around 2500 bags and the spot price for finger variety fetched Rs.6300 per 100kg. Nizamabad market remained closed due to local festival.

Cardamom futures traded lower due to ample supply in major spot markets. Poor demand from north Indian buyers amid decline in retail sales due to unfavorable weather conditions over there may as well weigh on prices. Meanwhile, the export demand is expected to rise as the current price is reported to be attractive for overseas buyers. In the international market, Indian cardamom trades at around $17 per kg. Also, the weather conditions continued to remain unfavourable in India. On Sunday, total arrivals and offtake at the auctions were around 72 tonnes and 68 tonnes, respectively. The spot price on an average was quoted as Rs.700 per kg and the maximum price stood at Rs.1048 per kg.

Chilli futures traded higher because of concerns over weather in major producing states. Heavy rains battered Andhra Pradesh causing damage to rabi crops. At least 12 districts of Andhra and Telangana regions were affected due to heavy downpour on Saturday and Sunday followed by unexpected hail storm. Chilli crops were damaged in Krishna, Guntur, Khammam, Prakasham and adjoining districts due to heavy rains. Rains are likely at a few places over major chilli producing areas of Madhya Pradesh and Telangana. On Saturday, chilli arrivals in Guntur were around 30000 bags (1bag=45kg). The spot price for the spice traded at Rs.6300 per 100kg.

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