Market Briefing: Spices and Exotics – 10 Sep 2021

– Wildfires have destroyed 10,000 tonnes of the Greek honey crop
– 31% growth in Mexican honey exports
– Gradual rise in Indian coriander prices thanks to domestic demand recovery

Production

– India’s 2020-21 coriander crop is likely to increase by 17% y/y to 822,210 tonnes (based on a 19% increase in area to 628,600 hectares), according to the Spices Board of India.
– Portugal’s 2020 honey output reached 9,817 tonnes, 3% less y/y, according to the government.
– Summer wildfires have destroyed 10,000 tonnes of the Greek honey crop, according to the EU farming association Copa-Copega. The island of Evia, one of the most affected areas, accounts for a third of domestic production, which averages 20,000-24,000 tonnes annually.

Demand

– The strong rise in demand for guar gum from India’s animal food industry has favoured the development of a guar price index in India called Guarex.
– The global vaccination process and the Diwali festival’s (India, November) campaign has favoured a sharp rise in demand for spices such as turmeric and coriander.

Trade

– India’s coriander exports rose by 15% y/y in volume to 23,740 tonnes and by 20% in value to $29.2 million.
– India’s pepper exports increased by 43% in volume to 11,260 tonnes, worth USD45.8 million (+57% y/y) in H1 2021. The US was the biggest importer, accounting for 37% of the total volume.
– Mexico’s honey exports rose by 31% y/y to 17,600 tonnes and doubled to $64 million in H1 2021 thanks to a combination of a high crop and rising price. The main importers were Germany and the US, taking 49% and 12% respectively of the total volume.
– Ethiopia’s sesame seed exports reached 100,000 tonnes in H1 2021, worth $150 million, a third less y/y in volume and value. The main importers were the UAE, Israel and Vietnam, accounting for 30%, 25% and 11% respectively of the total volume.

Prices

– Ethiopia’s sesame seed prices reached $1,360/tonne fob for Whitish Wollega Grade 3-5 this August, $30 up from July due to rising sea freight costs.
– India’s black pepper prices have been stable at USD5,500/tonne ex-works nw Europe for MG1 grade since April.
– The Indian coriander spot price was INR8,144 per quintal (USD111.3/quintal) at Kota (Rajasthan, North India) wholesale market on 6 September, 11% more than on 9 August, as domestic demand is gradually recovering after the government eased Covid-19 restrictions.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-10-sep-2021/