1. Spices Market News
February 2nd Week, 2015
Red Pepper
The crop and market situation in Andhra Pradesh remain favourable. The crop
output is good, arrivals have started. The demand is also healthy, as North Indian
buyers and China; SE Asian country exporters are also active. The arrival from
many of the areas where the planting has been delayed is just starting. As
mentioned in our earlier reports, this year the arrivals are going to be well spread,
but regular. Lack of funds is still haunting the farmers a little bit. The availability of
loans by banks has come down. This is forcing the farmers to sell off at least part
of the produce during harvest itself.
The chances of prices coming down drastically from present market rate is low,
even though downward spikes due to supply demand situation in Guntur market is
not unlikely. The off season price trend will heavily depend on rumors and MP
crop situation. If the MP crop fails like last year, there is a chance of price shoot up
of in off season. If the MP crop is good, the price will remain steady. However, it is
too early to comment about the off season price trend now.
Considering the factors known to us now, the price is likely to move laterally this
year. It may be better to cover or contract major portion of the requirement in
season this year, if the prices become really favorable during season
Red Pepper (BI-IPM)
The next crop BI program is coming to an end. The harvest has started.
Procurement commenced by most of the companies. The price is favourable now.
It may be advisable to contract with suppliers with a good BI program now.
Black pepper
The black pepper market saw a considerable reduction and a fast downward slide
after the New Year. After the downward slide, the price graph found foot hold for
some time, and traded laterally. As mentioned in our previous report, Vietnamese
exporters were competing with each other with speculator quotes. Once all the
exporters stepped in, and started buying for their export commitment the price
started moving up slightly just before TET holidays. Now the Vietnam market is on
TET holidays, and once it reopens, and the actual harvest starts with volumes,
there may be another dip in the price graph, aligned to the Chinese New year. But
the demand for the committed volumes during January and February , will always
be there to support the market. Once market settles down after TET, and the
major harvest and arrivals stabilizes, the market may gain momentum again.
Indian arrivals also started, and are gaining in volumes. Material availability has
increased, and the price has come down. The pepper from Karnataka, will also
start shortly, and may ease the prices a bit more.
It may be better to cover, when the price is lower after the holidays in Vietnam,
and keep on covering small quantities, as the reverse movement, if it happens, will
be drastic, and unpredictable. Thus the reaction time in such a market situation
will be really low.
White Pepper
White pepper prices have been moving in line with the BP market, and the new
stocks will start arriving majorly in March after the Chinese New Year. Price are
decreasing steadily, and it may be better to keep on covering in small quantities to
have a lower average
Market Trend
Commodity Short Medi
um
Long
Red Pepper
(BI)
Red Pepper
(Non BI)
Black Pepper
White
Pepper
Turmeric
Cumin
Fennel
Fenugreek
Coriander
Mustard
Ginger
AB Mauri India P Ltd
Cochin, India
Tel : +91 484 2413068/48
Fax : +91 484 2413050
www.cochinspices.com

2. Recommendations
Commodity
Red Pepper
(BI)
Cover for short term.
Cover good qty in
season.
Red Pepper
(Non BI)
Cover short term,
contract for next year
Black Pepper Cover for short term ,
keep on covering in
small quantity
White
Pepper
Cover for short term,
and cover the rest
during season
Turmeric Cover for major
portion of the
requirement and keep
watch on the market
Cumin Cover for short term
and medium term.
Cover most of the
requirement in season
Fennel Cover for short and
medium term
Fenugreek Cover for short and
medium term
Coriander Be very lean on
inventory
Mustard Up to individual buyers.
Ginger
(Cochin)
Cover short to medium.
Nutmeg and
Mace
Cover maximum
requirement , as next
arrivals are in June
Spices Market News
February 2nd
Week, 2014
AB Mauri India P Ltd
Cochin, India
Tel : +91 484 2413068/48
Fax : +91 484 2413050
www.cochinspices.com
Turmeric MFT
As mentioned in our previous reports, MFT price is getting support. The price is
moving up, and is likely to trade to higher grounds. There may be temporary dip
during major crop arrival from Tamil Nadu and Karnataka. The stock levels are still
estimated to be good. But the production has been low for three four years now,
and the price was hovering around for production cost for long. The online market
trends also show a bullish nature. In general the feel is bullish, in most of the
source market.
It may be better to cover in small quantities, throughout this season. It is better to
remain covered in this market condition than to remain short. If the market swings
up, the online market speculators will fuel the uptrend by rumors on low
production, less stock etc.
Cumin
The cumin production is estimated to be really low. Some sources report even
60% reduction in area, even though it is a bit farfetched. The harvest has started in
some small pockets. Rajasthan is yet to start the harvest. There can be a
temporary down trend once the arrivals picks up, and it is likely to go upwards
once the season ends. It may be a good idea to cover most of the requirements in
season itself. Contracting with suppliers of good repute is also a good move, for
annual deferred delivery contracts.
Coriander Seeds (Indian)
As expected the coriander has started its journey downwards, and is likely to trade
low for some more time. The actual arrival in Rajasthan and MP is yet to start. The
crop from Gujarat is trading low already, and Haduati belt is following. Once the
arrival picks up in Haduati belt, the prices will come down further. The future
quotes are already low in physical and online markets.
It is wise to be lean on inventory now, and cover some qty during season. As the
production is going to be good, off season price may not go very high, if not
influenced by the online exchange
Nut Meg and Mace
The crop arrival is over, and crop output was normal. The availability of the low
afla toxin is really low in market and next arrival possibility is only in June 2015
from India. It may be wise to cover major portion of the requirement now.
Contact Information
AB Mauri India Pvt Ltd
Plot No 24, Cochin Special Economic Zone
Kakkanad, Cochin 682037 India
Tel +91 484 2413135 Fax +91 484 2413050
E mail: spices@abmauri.com
Web: www.cochinspices.com
www.abmauri.com
Disclaimer
The contentof this report is provided as generalinformation only and is strictly the opinion and the best of the knowledge of its authors. Information
is provided without any warranty, expressed or implied. Information is gathered from sources which are believed to be authentic. Decisions to
contract purchase or otherwise are the full and complete responsibility of the purchasing company and or individual, AB Mauri India P Ltd or its
employees orits group companies, will notassume any responsibility about the decisions taken directly orindirectly based on this report.