The spot prices of turmeric on commodity bourse NCDEX on Friday was quoted at Rs 12,904/quintal, while the futures prices for December 20, 2023 delivery rose to Rs 16,082/tonne.
After tomatoes and tur dal, many spices such as jeera (cumin seeds), turmeric and coriander (dhania) have become dearer in the last few months because unseasonal rains prior to harvesting impacted output amid robust domestic and export demands.
Traders FE spoke to across key markets of spices varieties said prices are likely to remain firm till the end of this year, given the likely higher demand in the coming festive season. Moderation in prices are expected by early next year for some of spices varieties as new crops arrive.
Retail inflation in the spices category was reported at 19.19% in June on year. The inflation hit a record 21% in January, 2023 and it has been in double digits since the beginning of the year.
Jeera prices, which had been rising since January this year because of prospects of lower output, has now doubled to Rs 60,000/quintal at Unjha, Mehsana district of Gujarat, the hub of the spices trade. A year back prices were around Rs 30,000/quintal.
This has pushed retail inflation in jeera to a record 74% in June 2023 on year.
“Output was impacted by unseasonal rains during harvesting months of January and February in major producing states of Gujarat and Rajasthan,” Dinesh Patel, chairman, Agricultural Produce Market Committee (APMC), Unjha, Gujarat, told FE. Patel said that mandi prices are likely to remain up and may reach Rs 70,000/quintal by November as inventories with traders and farmers have been lower than previous year.
The spot prices of jeera (Unjha) on commodity bourse NCDEX on Friday were quoted at Rs 60,825/quintal, while the futures prices for November 20,2023 delivery rose to Rs 61,885/quital.
The coriander mandi prices have also risen sharply in the recent weeks because of the impact of erratic weather conditions in March and April. On Saturday, average mandi prices of coriander rose to Rs 7,525/quintal at Deesa Market Yard, Banaskantha district, Gujarat against around Rs 6,000/quintal prevailed a year ago.
Mandi prices of another variety of spices – turmeric are currently ruling around Rs 14,000/quintal in Maharashtra, Telangana and Tamil Nadu from Rs 7,000/quintal in April because rain in April-May, which have adversely impacted the output, and delayed sowing due to the late onset of monsoon.
“Farmers’ harvests were impacted due to unseasonal rains in Maharashtra and delay in sowing would also impact production in the current year,” Ankit Agarwal, Director, Amar Agarwal Food, a Erode, Tamil Nadu based trader in turmeric, said.
The spot prices of turmeric on commodity bourse NCDEX on Friday was quoted at Rs 12,904/quintal, while the futures prices for December 20, 2023 delivery rose to Rs 16,082/tonne.
The Spice Board of India in its first advance estimate has estimated turmeric production in the 2022-23 crop year (July-June) at 1.16 million tonne (MT), recording a decline of 5% from 1.22 MT in 2021-2022. However the board has estimated about 13% and 15% rise in cumin and coriander production in 2022-23 year to 0.62 MT and 0.84 MT respectively.
Trade sources said that the estimate of output of jeera, turmeric and coriander is likely to be revised downward in the current crop year in the subsequent estimate by Spices Board.
Spices category has 2.5% weight in consumer price index (CPI).
Source:financialexpress.com