Geojit Comtrade`s view on Pepper, Jeera, Turmeric

Geojit Comtrade has come out with its report on Pepper, Jeera & Turmeric.

Pepper price rose due to strong overseas and domestic demand amid limited supply. The arrivals in major spot market are thin compared to the same period last season. Farmers are holding back the available spice in anticipation of further rise in prices. In the international market, Indian parity increased to $7800 per tonne for US and $7500 per tonne for Europe. According to a report from International Pepper Community, to meet the export demand, India imported pepper from Vietnam. Added, in Vietnam, pepper harvest is going on; but producers prefer to hold material onto stock, expecting a better price. Pepper futures are expected to remain firm owing to strong demand amidst lower arrivals.

Jeera futures may witness gains due to likely rise in export demand. Good domestic demand for the new crop may also add support to the prices. In the last few sessions, jeera futures had declined sharply on expectation of rise in output. Jeera arrivals in Unjha market were around 9000 bags, higher than 7000 bags on previous trading day. Of the total arrivals, 2000 bags were from the old crop, largely unchanged from the last day. In Unjha, the new jeera crop was quoted at Rs.14100 per 100 kg. The price of the old jeera crop was steady at Rs.14300 per 100 kg, compared with previous day.

Turmeric futures, ended on steady note due to rise in arrivals and expectation of higher output. Arrivals of turmeric in Erode were seen at 17000 bags. The country's turmeric production in the current season is seen higher by around 30 percent to near 10 million bags (1 bag=70 kg). Price of the finger variety in Erode and Nizamabad stood unchanged at Rs.3800 and Rs.4900 per 100kg, respectively. In Nizamabad, arrivals were seen stable from the previous day at 8000 bags. However, turmeric futures may gain on value buying as spot prices are trading at a premium to futures. Good domestic demand and fresh export enquiries may also keep sentiment positive for turmeric.

Cardamom: Good export demand pushed prices higher in the spot and futures markets. Expected fall in daily arrivals as crop season is to end by mid March also encouraged the prevailing positive sentiments. Apprehensions over production in the next season due to unfavorable climatic conditions in major growing areas and availability of good quality cardamom from the domestic market compared to other major producing countries also increased the demand for the spice. Arrivals at the auction were reported at around 76 tonnes. The maximum price was at Rs.988 per kg and the minimum was at Rs.413.50 per kg. Auction average stood at Rs.728.41 per kg.

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