Market Review – Spices and Plantation crops price demand and exports
Kochi: Pepper has lost its footing; the agriculture sector is worried. Producers are eyeing an imminent breakthrough. Tire companies cut sheet prices to mask weakness in international rubber. Cocoa excels in the international market. A wake in prices of coconut products, coconut oil sales did not heat up.
A large number of buyers have moved away from the field as the crop in pepper plantations in southern districts has progressed to a low maturity. Ready Pepper prices fell by ₹700 per quintal due to their organized walkout with the aim of bringing down prices. Buyers are of the opinion that less ripe Pepper will be available for sale at the end of the month.
In the meantime, the import lobby may try to raise domestic prices and sell stocked goods. They watch the movements of the market silently but are in a position to hold after assessing the level to which the price will fall.
Information from there says that many powder units in North India have procured pepper for processing during severely cold weather. Many people mostly bought cheaper imported pepper. The curry spice industry’s skimp on domestic black pepper has led to a contraction in sales in the past few months in South India. Panicked by the weakness in the market, a section moved in the days it took to offload stocks.
Indian Black pepper has the highest price in the international market. Our rate is $6350 per ton. Vietnam 2800, Indonesia 3000, and Brazil 270, the cargo is also unloaded. In Kochi, the price of Un garbled Pepper is ₹48,000 and garbled is ₹50,000.
Customers were eager to collect cardamom on many occasions, but cardamom did not live up to the expectations of sellers. In many parts, production has been reduced due to rains, and expectations of buyers to raise prices and take the goods have dimmed. A large quantity of cardamom is coming up for auction. 809 per kg on average.
Orders from exporters and domestic traders have buoyed the nutmeg and nutmeg trade. Arab countries gave pre-emption to Indian nutmeg and boosted export levels. North Indian buyers are stocking up on the Central Kerala markets. Nutmeg hulled 250-330 kg, unhulled 580-620, jatipatri 1300-1400, and jati fruit went up to ₹ 1800-1850.
Cocoa farmers are busy harvesting. The chocolate industry bought green cocoa at ₹44-55 per kg. At the same time, they offered up to ₹57 for high-range goods. Dry cocoa fetched up to ₹205 per kg. The best high-range cocoa companies paid up to ₹215. Producers are expecting the rate to rise further.
There are fears that chocolate sales will decline as European countries move into economic recession. But in the international market, the price of cocoa rose from 1890 dollars to 2072 dollars in two weeks. Coco, which fell to 1525 dollars last December, advanced up to 2098 dollars in return.
The shortage of potash and other chemical fertilizers caused by the Ukraine-Russia war also affected cocoa farmers. Ivory Coast’s and Ghana’s cocoa exports have also weakened due to reduced cocoa production.
Taking advantage of lower rubber prices in Asian countries, Indian industrialists cut domestic prices. At the same time, the rubber-tapping scene is slow due to the adverse climate. In many parts, farmers were forced to withdraw from tapping in the morning due to overnight rains. Tire companies buying fourth grade for 149 per Kg. 129 rupees for equivalent fourth-grade rubber in Bangkok. Tocom December future is 216 yen. The market has resistance at 220-240 yen and support at 208 yen.
Although prices of coconut products advanced, coconut oil sales did not increase as expected by the industry. In Kochi, coconut oil rose from ₹ 12,900 to ₹ 13,200. At the same time, copra rose from 7900 to 8500 rupees. When copra went up by ₹ 600, oil prices should have gone up by ₹ 1,000, but it only went up by ₹ 300. Demand for coconut oil is low in the local market.
Report by – Mr. K B Udaya Bhanu