Indian Spices Hit A Low; Turmeric Hits 2% Lower Limit

Futures contracts of spices today traded lower on domestic exchanges. Turmeric futures on the National Commodity & Derivative Exchange hit the 2% lower limit as production in the current 2019-20 (Jul-Jun) season is seen higher due to favourable rains in producing states, said traders.

The most active October contract had hit a six-month low of 6,124 rupees in early trade. “Sluggish demand and sufficient arrivals in the spot market also weighed on prices,” said Vivek Modani, a Nizamabad-based trader.

Coriander contracts declined due to sluggish demand and a rise in arrivals in the physical market. Coriander arrivals in Ramganj, Rajasthan, were pegged at 4,000 bags (1 bag = 40 kg), up from 2,000 bags from the previous day, said Giriraj Gupta, a Ramganj-based trader.

“Reports of rise in imports and expectations of likely rise in sowing of coriander in the upcoming rabi season also weighed on prices,” said Gupta.

Jeera futures also traded weak as good rains in the producing states of Gujarat and Rajasthan may lead to a rise in acreage under the spice, said analysts.

Mentha oil futures on Multi Commodity Exchange ended lower due to weak demand following continuous rains in Uttar Pradesh and Madhya Pradesh.

Cardamom futures declined as traders booked profits after the spice hit the 4% maximum upper circuit on Tuesday for the fourth day, Veeresh Hiremath, head research at Karvy Commodity, said.

“As new arrivals hit the market during the end of September, prices initially may be under pressure,” Hiremath said.

In the case of pepper, October futures ended slightly lower due to sluggish demand and a continuous rise in poor quality imports from Sri Lanka and Vietnam, analysts said.

Share Button

Comments are closed