Informist, Thursday, Jun 1, 2023
By Afra Abubacker
MUMBAI – Spices complex traded in the red today on the National Commodity and Derivatives Exchange today due to tepid demand and increasing arrivals in major markets. Coriander contracts hit an over two-year low of 6,160 rupees per 100 kg on the domestic bourse due to rising supplies amid higher production in Rajasthan and Gujarat.
The most-active June contract of CORIANDER was at 6,162 rupees per 100 kg, down 3.6% from the previous close. Earlier today, the contract hit an over two-year low of 6,160 rupees per 100 kg.
Coriander prices fell today due to increased arrivals in major markets. “Due to favourable weather, markets today saw extraordinary arrivals. Rajasthan saw around 52,000 bags (1 bag = 45 kg), while Gujarat and Madhya Pradesh saw 20,000 bags and 40,000 bags, respectively,” said Satya Narayan Gupta, a Kota-based trader.
Subdued demand from stockists who expect further fall in prices also weighed on coriander prices. “Buying position is really weak. Prices are likely to fall further by 400–500 rupees in the coming weeks,” Gupta said.
Coriander prices are on a downtrend due to higher production in Gujarat and Rajasthan. Farmers had shifted to coriander cultivation last year due to favourable weather and lucrative returns. Last April, coriander fetched a seven-year-high price of 13,000 rupees per 100 kg. Coriander is a rabi crop that is sown from October to December. The crop takes three months to mature and harvesting is carried out from January to April.
The most-active June contract of TURMERIC was at 7,656 rupees per 100 kg, down 4% from the previous close. Prices in the key wholesale market of Nizamabad, Telangana, were down 100 rupees at 7,000-7,200 rupees per 100 kg, traders said.
Increased supplies in major markets and tepid demand weighed on turmeric prices. The Nizamabad market saw increased arrivals of 6,000 bags (1 bag = 65 kg), traders said.
However, concerns over upcoming crop amid bleak monsoon forecasts are likely to limit the fall in prices. Turmeric takes nine months to mature, and is sown during Apr-Jul, with the arrival of pre-monsoon showers. The crop is harvested from January and extends till March. Major turmeric growers are Telangana, Maharashtra, and Tamil Nadu.
The most-active June contract of JEERA was at 44,400 rupees per 100 kg, down 0.3% from the previous close. Prices in the key wholesale market of Unjha, Gujarat, were at 45,900 rupees per 100 kg, 100 rupees lower than the previous day of trade, traders said.
Jeera futures fell on the domestic bourse due to tepid domestic and export demand at prevailing levels. Marginal traders and stockists are avoiding bulk-buying in expectation of further fall in prices as arrivals improve in the coming days.
Jeera prices surged to a record high of 49,280 rupees per 100 kg in the second week of May due to tight supplies and firm demand. Low carry-over stocks and lower production in Gujarat and Rajasthan due to a drop in acreage and yield supported prices.
Following are today’s closing prices of the most-active contracts of spices:
Edited by Tanima Banerjee
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