Market Briefing: Spices and Exotics

– Indian cumin seed and coriander seed crops expected to be smaller in 2022
– Pepper exports decline from Brazil and Vietnam
– Brazilian organic honey increases in price

Production
– India’s 2020-21 coriander seed crop is expected to increase by 17% y/y to 822,210 tonnes on 628,600 hectares, 19% more y/y. Planted area and production is projected to be lower in 2022.
– India’s turmeric planted area is expected to be bigger next year but recent unseasonal rains led to plant diseases in some of the growing regions, which could lower yields.
– Preliminary surveys of growers and sowing data at the end of November indicate a drop in acreage of cumin and coriander in India as growers switch to more profitable crops. Acreage and production is expected to be lower in 2022 compared with the previous year for both crops.
– Bulgaria’s 2021 essential oil production is expected to reach 400 tonnes, a 10-year record-low, due to low rose and lavender crops. Low yields, labour shortages and high production costs have been the drivers of the fall.
– Brazil’s most recent organic honey crop in spring (autumn in Europe) in the northeast of the country was very poor. Now Brazil is optimistic that its January 2022 crop is starting well in the south and in the northeast. In addition, beekeepers in the country are expected to be highly motivated by high prices this year.

Demand
– Traders report that European honey sales are running quite well but there is a lot of pressure on the ingredients use side. People are considering using less or using cheaper origins than Brazil or Argentina to bypass huge price increases.
– Indian turmeric continues to attract strong export demand .
– Indian coriander seed has also drawn more overseas buying, being slightly ahead in the first nine months of this year .
– High prices have helped reduce Brazilian and Vietnamese pepper exports over January-November 2021.

Trade
– India’s global turmeric sales reached 126,980 tonnes, worth $183.8 million, in January-November 2021, 6% more y/y in volume and 2% less in value. The main importers were Bangladesh, the UAE and the US, taking 20%, 13% and 6%, respectively.
– Indian coriander seed exports rose by 0.6% y/y in volume to 38,672 tonnes and by 5.0% more in value to $47.1 million in January-September 2021. The main importers were Malaysia, Nepal and the US, which took 21%, 11% and 9%, respectively.
– Brazilian international pepper sales fell by 2% y/y in volume to 80,810 tonnes and rose by 56% in value to $260.8 million in January-November 2021. Germany, the UAE and the US were the main importers, accounting for 15% and 13% and 11%, respectively.
– Vietnam’s pepper exports were 245,975 tonnes, worth $867.1 million, in January-November 2021, 7% less y/y in volume and 44% more in value, thanks to high price levels. The US and the UAE were the main importers, accounting for 22% and 6%, respectively.

Prices
– The Indian spot fob turmeric price averaged INR7,833.35 per quintal ($103.3/quintal) at the Nizamabad market (Telangana state, south central) on 13 December, 9% more than on 15 November. Indian turmeric prices in general have been gaining of late due to the impacts of rains and increased demand.
– Prices on Indian coriander seed and cumin seed moved up recently due to concerns of lower production in crop year 2022 despite weak export demand, Olam Spices observed in its latest monthly report.
– After earlier easing to below $4,000 per tonne Brazilian organic honey is now at $4,300/tonne cif northwest Europe.
– Brazil’s black pepper prices were at $4,400/tonne for Grade 1 in November, $62 more than in September.
– Vietnamese pepper prices have reached $4,700/tonne cif nw Europe for black pepper min 550 g/l (+20% m/m) and $6,900/tonne (+7% m/m) for white pepper min. 550 g/l.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-20-dec/