Market Briefing: Spices and Exotics – 03 Sep 2021

– Indian chilli planted area projected to rise up to 30%
– Italy faces decline in honey output
– Indian boosts cumin seed exports

Production

– The Indian farming industry has announced that bearing acreage for guar seeds and gum might fall between 30-40% y/y to 1.5-1.6 million hectares, after low prices in previous years.
– Indian chilli sowings are expected to finish in Andhra and Telangana (South) this month. High temperatures damaged 5-10% of sown plants. This means many famers delayed sowing in irrigated areas of Karnataka from three-four weeks to avoid unseasonal rains during the fruiting stage.
– The Indian chilli acreage might rise by 30% y/y to 52,000 hectares.
– Italy’s 2021 honey output might fall by a quarter from the annual average of 15,000 tonnes due to unfavourable weather, with warm temperatures in winter, frosts in spring and heatwaves in summer, according to the Italian Farming Confederation (Coldiretti).

Demand

– Demand for Indian guar gum and seeds recovered strongly in the third quarter of this year and exports are gradually rising.
– The country’s cumin seed is also attracting more overseas buyers based on export statistics for the first four months of this year (see Trade below).
– Overseas demand for Indian sesame seed is reasonably steady, with exports only slightly lower for the first five months of this year (also see Trade below).
– Italy will have to import 10,000 tonnes of honey to secure domestic consumption.

Trade

– Indian sesame seed exports were 101,500 tonnes, worth $159.7 million, in January-May 2021, 5% less y/y in volume and 16% less in value. The main importers were South Korea, the US, Russia and Taiwan, which took 19%, 10%, 6% and 5%, respectively, of the volume.
– Imports reached 15,530 tonnes in January-May 2021, six times less y/y. The main suppliers were Brazil and Sudan, which accounted for 60% and 14%, respectively, of the total volume.
– Indian cumin seed exports rose by a third y/y to 120,790 tonnes, worth $213.3 million, 19% more y/y in value, from January-April 2021. China was the main importer, taking 35% of the total exported volume.

Price

– India’s new sesame seed (whitish) spot price was INR10,250 per quintal ($140.3/quintal) at Unjha wholesale market (Gujarat, North East) on 2 September, 12% higher than on 3 August.
– India’s cumin seed spot prices rose by 6% to INR14,572 per quintal ($199.4/quintal) at the Unjha market (Gujarat, North West) between 2 August-1 September, despite weak domestic demand thanks to high exports.
– India’s National Commodity and Derivatives Exchange Limited (NCDEX) has launched a sectoral index price called Guarex, based on the futures contracts of guar gum refined splits and guar seeds on a real-time basis.
– Guar seed and gum prices might be volatile between 2021-22 due to a projected fall in planted area (see Production above) and demand from the animal feed industry in particular after weak purchases from the US oil industry between 2020-21.

Source: https://vietnamentrepreneurs.com/market-briefing-spices-and-exotics-03-sep-2021/