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Spices Update

posted Dec 19, 2010, 2:42 AM by Unknown user
Chilli market has been tight over the past month or so, due to unfavorable weather in AP and also good export demand from Pakistan and Malaysia. Daily average arrivals at Guntur market were reduced to 35,000-50,000 bags (each bag=40 kg) and prices were hovering in the range of Rs.4700-5000 up by Rs. 300 per quintal. However, as per trade sources, sowing is now gaining pace as weather is improving in major growing region of A.P. As per data released by AP Agriculture Department, till November 24th acreage under chilli sowing is around 0.24 lakh hectares as compared to 0.38 lakh hectares in the same period last year. Also Bangladesh, a major buyer, has been on the sidelines completely for the past month. As a result some bearishness should be seen ahead as weather also clears out more.  

Turmeric prices also increased on the back of weather concerns and good domestic as well as certain export demand from middle east. Transporter’s strike in Tamil Nadu also affected the market. Traders in Tamil Nadu also stayed from market in absences of transport facility. Arrivals at Nizamabad and Erode market were 200 bags and 4000-10,000 bags respectively (each bag=70 kg) on average over the month. Stocks available at spot market is around 3-4 Lakh bags (each bag=70 kg). Also the export demand is faltering at these high prices. As such the prices are witnessing a bit of correction. However good local bulk buying and short stocks should support the prices.