Spices trade in the grip of recession

06-May-2025 06:46 PM

New Delhi. Due to border tensions and a war-like situation, the export of spices is being severely affected. It was initially expected that the Eid festival in June would boost spice exports during May, but rising tension between India and Pakistan has discouraged buyers. Exporters fear that if a conflict breaks out, payments for shipped goods may be delayed or blocked, leading to a near-halt in trade.

Cumin
Cumin prices continue to decline. Despite low arrivals at producing centres, weak export and local demand have kept prices sluggish, falling by Rs 100–200 today. In the futures market, May closed down by Rs 645 and June by Rs 595. No significant price recovery is expected in the near term.

Turmeric
The turmeric market is also experiencing a slowdown. Arrivals from Nizamabad, Erode, and Sangli remain limited, and even in Marathwada, supply is below expectations. With demand lacking, prices dropped again today by Rs 100–200 at production centre mandis. Futures showed turmeric at Rs 184 for May and Rs 158 for June. Despite low availability, the overall sentiment is not overly bearish.

Small Cardamom
Small cardamom prices remain weak. A recovery is unlikely unless export demand picks up. However, crop conditions for the upcoming July harvest appear favorable, keeping prices stable at current levels.

Coriander
Even though market sentiment is slightly positive, prices remain soft due to limited trade amid ongoing geopolitical tensions. Futures closed with declines of Rs 98 for May and Rs 108 for June. A major decline is unlikely, and prices could improve once the situation stabilizes.

Black Pepper
Prices of black pepper have also declined due to profit booking, selling pressure, and weak demand. Over the past week, prices have dropped by Rs 10–15 per kg. No significant recovery is expected in the short term.