Spice prices in India skyrocket amid lower output and high demand

Published 2022년 9월 19일

Tridge summary

In the past year, India has seen a significant increase in the mandi prices of various spices, including cumin, coriander, black pepper, and dry chilli, due to a decrease in production and strong global demand. The price surge ranges from 6.7% for turmeric to as high as 23.4% for dry chilies. This trend is expected to persist as traders predict further price hikes. Reduced production is attributed to adverse weather conditions and disease affecting cumin crops, leading farmers to shift to other crops. As a result, the price of cumin has doubled, reaching around Rs 4,700 per 20 kg bag, with expectations to hit Rs 5,000 by November. Other spices like raw chilies, coriander, and cardamom have also experienced substantial price increases.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Decline in production against a high domestic demand has led to a double-digit increase in mandi prices of spices, including cumin (jeera), coriander (dhania), black pepper and dry chilli, in the last one year. With the exception of turmeric, for which inflation was 6.7% on year in August, all other spice varieties reported double-digit inflation — dry chilies (23.4%), coriander (18.9%), cumin (18.3%) and black pepper (14.7%). Traders say while turmeric prices have stabilised since its peak earlier this year, mandi prices of all other spice varieties are expected to rise further, because of supply constraints caused by lower production and robust global demand driving exports. The mandi price of cumin (jeera) is currently ruling around Rs 4,700 per 20 kg bag at Unjha mandi (Gujarat), the largest market of the spice in the world, against a price range of around Rs 2,400-2,600 per 20 kg bag that prevailed a year ago.Traders are expecting the prices to further surge and touch Rs ...

Source: Indoasiancommodities