Jeera Future to trade lower: Geojit Comtrade

Geojit Comtrade has come out with its report on spices. According to the research firm, Jeera futures are expected to trade lower due to rising new crop supplies in the spot market amid limited demand from stockists.

Jeera futures are expected to trade lower due to rising new crop supplies in the spot market amid limited demand from stockists. Reports of high moisture content in the new crop may also pull down the prices. As per market source, arrivals from Rajasthan are expected to commence by the end of March month, which may further pressurize prices. Conversely, India's jeera exports are likely to hit a record high in the current financial year because of low price and good quality crop. The government of Rajasthan has exempted jeera from value added tax, according to the budget speech for 2013-14 on the state government's website. On Thursday, jeera arrivals in Unjha were around 26000 bags (1bag=55kg) and the spot price for the spice traded at Rs.13100 per 100kg.

Turmeric futures extended the uptrend tracking the rise in spot prices, which rose due to improved domestic demand and lower arrivals. The finger variety quoted Rs.5600 per 100 kg in Nizamabad, steady from increased to Rs.6900 per 100kg. Arrivals in Nizamabad and Erode were around 10000 bags (1bag=70kg) and 5000 bags, respectively. The government of Rajasthan has exempted a number of commodities in the spices complex including turmeric from value added tax, according to the budget speech for 2013-14 on the state government's website. Turmeric production in 2012-13 is expected around 50-60 percent lower compared to last year's historical high because of fragile sowing in major producing states in India.

Cardamom prices are expected to trade lower in the near term as there are reports of illegal imports of the spice at various customs stations. However, as per media reports, the government is weighing the option of imposing a minimum import price on cardamom to check import of cheap varieties from countries such as Guatemala, Pakistan, Nepal and Bangladesh. Spices Planters' Association (SPA) members staged a protest against the import of cardamom from Guatemala at the Spices Board of India's headquarters in Kochi on Wednesday. The arrivals and offtake at the auction held in Idukki on Thursday were around 54 tonnes and 51 tonnes, respectively. The spot price on an average traded at Rs.635 per kg.

Chilli futures are expected to gain on reports of strong domestic demand and export enquiries from Bangladesh. According to market source, better quality crops have arrived in the spot market during the last few days. As well, reports of crop loss due to rain occurred in Andhra Pradesh last month may limit sharp fall in prices. Lower production estimates could also weigh on the prices. The government of Rajasthan has exempted dry chillies from value added tax, according to the budget speech for 2013-14 on the state government's website. On Thursday, chilli arrivals in Guntur were around 40000 bags (1bag=45kg) and the spot price for the spice traded at Rs.6000 per 100kg.

Coriander futures extended uptrend tracking rise in spot prices. As per market source, the spot prices rose as demand from stockists improved after better quality crop arrived in the markets. The government of Rajasthan has exempted coriander from value added tax, according to the budget speech for 2013-14 on the state government's website. However, sharp rise in arrivals in major spot markets may lead to a fall in coriander prices. New crop arrivals have started hitting the spot market and are likely to gather pace by the end of March month. On Thursday, total arrivals of coriander in major markets in Rajasthan were around 18500 bags (1bag=40kg). The spot price for the spice in Kota traded at around Rs.6000 per 100kg.

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