CROP REPORT JULY 2016

A monthly summary of the crop conditions and precipitation during

the growing seasons of all the spices we offer from different parts of
the world where they are at its best.

CROP REPORT JULY 2016

INTRODUCTION:
Weather is an uncertain and unpredictable factor which influences crop production and
its yield. It influences all components of crop production, including cropping area (area
planted or harvested) and cropping intensity (number of crops grown within a year).
Therefore, future impacts of climate change needs to be considered to get a better
estimation of production and supply of crops which ultimately results in the increase or
decrease in prices.
This report will help to understand how the present climatic conditions might influence
the crop production and to plan the procurement at the right time. We conclude by
discussing major points and inferences.
Indian - weather forecast:
The Much awaited Monsoon started in many states of Southern India and has started
slowly spreading over to other regions of the country. As per the Indian Meteorological
Department, the monsoons are expected to be better in the country compared to previous
years.
Period: 01-06-2016 to 15-06-2016
District/State
Actual(mm) Normal(mm) % Departure Category
Coastal AP
66.1
43.3
53
Excess
Telengana
63.6
49
30
Excess
North Interior Karnataka 77.1
61.9
25
Excess
Kerala
319.1
299.7
6
Normal
Source: IMD
BLACK PEPPER:

Pepper price at all origins remained bullish.

Indian price of black pepper increased slightly by the third week of June.
In dollar terms however, the prices were relatively stable due to weakening of local
currency.
Sri Lanka and Indonesian markets also showed an upward movement in
prices by the end of June.

India

Spot pepper continued to show an upward swing on tight supply amid good
demand.

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CROP REPORT JULY 2016

Indonesia

Indonesian new crop season is expected to start by mid - July and crop is estimated
to be normal as last season.
Weather conditions in Indonesia had been favorable till now especially in
Lampung and other pepper growing regions.
Domestic Indonesian pepper markets were also relatively firm in comparison with
other Origins.

Vietnam

Markets in Vietnam continue to stay firm.

Many small warehouses or local buyers have about 100-200 /Mt unsold stock in
their warehouse. They just do not want to sell expecting prices to move higher.
Farmers are selling one or two bags every day and at steady prices
Currently, monsoon is in full swing in pepper growing areas and it is good news as
far as the new crop is concerned which is expected from January 2017 onwards

SriLanka

Srilanka prices have moved up for 9% standard piperine, as the exporters are
pushing the prices up due to the increased buying interest now.
Since crop was a failure during the season due to severe high temperature and less
rainfall, prices for light berries have increased beyond expectations.
Currently the availability of light berry is limited.

WHITE PEPPER

White pepper drying is not happening much in Indonesia as of now because of the
widespread heavy monsoon and the availability is also limited.

CAPSICUM

The Current chilli arrivals are from cold storages which costs higher compared to
prices during chilly season.
Prediction of a good monsoon for the year may restrict further upward trend of
chilli prices.
As of now, monsoon rains have already started in certain regions of Andhra
Pradesh and Telengana states.
Cold storage stocks of chilli in Andhra Pradesh and Telengana states are estimated
to be around 130 million bags. Out of this quantity, 20% is estimated to be Teja red
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CROP REPORT JULY 2016

and remaining quantity would be other seed varieties and color chillies for
grinding purpose.
Teja

Teja prices are expected to come down during August September if the monsoon
improves and if chilli cultivation area increases.

Namdhari

Total crop volume of Namdhari chilli was around 12500 13000 tons during the
season against an average output of 15500 16000 tons in the previous years.
During the last season, farmers had sold out 95% of their produce since the prices
were high and hence the cold storage stocks of Namdhari are negligible.

PAPRIKA
Indian Paprika

Paprika crop in Karnataka was short by 10 15% due to adverse weather

conditions.
Currently the paprika availability is limited and also the prices are on the higher
side.

China Paprika:

The availability of China Paprika is limited in the market and the price is also
increasing steeply.
The new season planting area has increased around 10%-20% .It is difficult to
forecast the new season price which begins in November. As of now it is predicted
that the price will remain high till the next crop begins in November.

TURMERIC

Export quality finger and Bulb turmeric prices have shown a temporary upswing in
the market during the last week due to export demand.
Overall regular finger and bulb turmeric prices maintained a steady price during
last few weeks.

Panangali :
Availability of Panangali is limited and prices are steady in the market.

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CROP REPORT JULY 2016

Kocha
The availability of Kocha turmeric is also limited.
Indonesia :

Turmeric crop season is expected to begin during mid-July after the rains, whereas
the current availability is nil.

DRY GINER
India
Ginger prices have come down by Rs.5 per kg due to less demand.
Nigeria
Prices have shown an upward trend during last two weeks as stocks are not
available.
The current stocks available are having quality issues of high moisture content.
CELERY:
Celery crop is good compared to last year. The good news is that the arrivals have
already started coming in full swing.
Prices have shown an upward trend during last week because of paddy harvesting
season.
NUTMEG/MACE
India
BWP arrivals have started in domestic markets.
Demand is less and prices are at low levels.
CASSIA

Indonesian cassia market is reported to be steady

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CROP REPORT JULY 2016

INFERENCES
Prices
Forecast Variety
for Short and
Medium Term:
Spices RM
Black Pepper
Sri Lankan
Indonesian
Vietnam
Chilli
Teja Red
Turmeric
Salem
Ginger
Shimoga

Short term

Medium term

Firm
Firm
Steady
Steady
Steady
Steady

Firm
Firm
Steady
Steady
Steady
Steady

BLACK PEPPER: Pepper price at all origins remained bullish.

CAPSICUM: The Current chilli arrivals are from cold storages which costs higher
compared to prices during chilly season.
PAPRIKA: The availability of China and Indian Paprika is limited in the market
and the price is also increasing steeply.
TURMERIC: The regular finger and bulb turmeric prices maintained a steady
price in the month of June.
DRY GINGER: Prices have come down for Indian ginger due to less demand
whereas prices have gone up for Nigerian ginger with limited stock availability.
CELERY : Celery crop is good compared to last year. The good news is that the
arrivals have already started coming in full swing.
NUTMEG/MACE: Price and demand are in direct proportion showing a downward
trend.
CASSIA:Cassia market is reported to be steady.

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