ITC Market Insider Spices Report June 2015

8/20/2019 ITC Market Insider Spices Report June 2015

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Market Insider

SPICESMARKET INSIDER


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Market Insider

Spices

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INDEX

SPICES NEWS AND UPDATES ........................................................................................................ 1 MARKET DYNAMICS ......................................................................................................................... 3 PRICES IN THE MARKET PLACE ..................................................................................................... 6

Spices .............................................................................................................................................. 6 PRICES IN THE MARKET PLACE ................................................................................................... 10 Herbs .............................................................................................................................................10

STATISTICAL INFORMATION AND RELATED RESOURCES ...................................................... 11 EVENTS ............................................................................................................................................ 18


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Spices News and Updates

Monsoon arrives in southern India

The summer monsoon finally arrived in Kerala brining the prospect of relief from the killer heatwavethat has killed more than 2,500 people this year. As the monsoon moves north more clement

temperatures should prevail but extreme heat is still possible in central and northern states in thetwo weeks before the rains arrive.

The monsoon arrived in Kerala on June 5th a few days behind schedule, a feature that has becomecommon in recent years. A developing El Niño is expected to lead to reduced rainfall and warmerconditions in northern states over the middle of the year though this is by no means certain and notall El Niños lead to drought.


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Chilli, mint and mint products, cumin, spice oils & oleoresins, pepper, turmeric, coriander, smallcardamom, curry powder/paste and fenugreek contributed substantially to the spice export basket

as the demand for Indian spices scaled up phenomenally.

In 2014-15, a total of 893,920 tonnes of spices and spice products were exported, registering a nineper cent increase.

The total export of spices during 2014-15 exceeded the target of 755,000 tonnes valued at Rs12,305 crore ($2,000 million) in terms of both volume and value for 2014-15.

“The increased demand for Indian spices in the international market is a testimony to their

unmatched quality and escalating faith in their sustainability," said A Jayathilak, chairman, SpicesBoard.

Chilli continued to be India's largest exported spice, accounting for 347,000 tonnes worth Rs 3,517crore in 2014-15. The export grew 11.04 per cent in quantity and 29.20 per cent in value comparedto FY14.

Mint and mint products - mint oils, menthol and menthol crystals - earned substantial foreignexchange worth Rs 2,689 crore through exports of 25,750 tonnes, emerging as a major money-

spinning commodity in international spice markets.

In terms of volume, chilli was followed by cumin with an export quantity of 155,500 tonnes thatearned foreign exchange worth Rs 1,838.20 crore. In 2013-14, the figures stood at 121,500 tonnesvalued at Rs 1,600 crore.

Value added spice products such as spice oils and oleoresins notched a significant high withfigures of 11,475 tonnes (exports) and Rs 1,910 crore, registering a growth of one per cent inquantity and 10 per cent in value, respectively. The figures for the corresponding period in 2013

t d t 11 415 t d R 1 733 ti l


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Multinationals blamed for price hike in Nigerian ginger

According to a report in the Nigerian newspaper Business News (13/6/15), the non-oil exportsector, once dominated by indigenous operators during the oil boom, has become attractive to bigmultinational companies as more and more of them have gone into the sector.

The result is that most indigenous companies are finding it hard to compete as prices of non-oilexport commodities have gone through the roof and out of their reach.

According to the project coordinator of the newly inaugurated Zero to Export project of the NigeriaExport Promotion Council for new exporters, Mr. Kola Awe, the pressure on the sector has alreadypushed up local prices of commodities.

Speaking during the unveiling of trainees in the first season of the project, Awe said almost all themanufacturing firms in the country had gone into non-oil export and the resultant pressure reflectedon local prices.

He said, “This is the first time in the history of Nigeria that ginger is selling for N450, 000 per metricton. A short while ago, it was N26, 000. Cashew now sells for N250, 000 per metric ton.

“To export a container of ginger, an operator needs N5m while N4.5m is needed for cashew. Itmeans an average Nigerian entrepreneur can no longer export because he cannot afford suchcosts.”

Awe added, “There is going to be more challenges in the sector. Many people are going to losemoney because the focus of the government is now on non-oil export and there is a lot of inflow.Every company, including the big multinationals that were not exporting before want to exportbecause the value of the naira has dropped drastically and firms need to raise foreign exchange to

b bl t b i i th i d ”


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Concerns push local vanilla prices higher

According to local traders vanilla prices have moved up sharply in Madagascar though the seasonis yet to open. Harvesting has apparently started in some areas, but officially the season is notlikely to be declared until the first week in July. The price moves are the result of speculativeactivity by exporters and there is some discussion about a lower than usual crop. The downsizingis expected because of a run of good crops rather than inclement weather or other externalinfluences. The early harvesting tends to be a consequence of higher prices when farmers feartheft more than a discount for low quality.


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Market Dynamics

Pepper – Prices rises were recorded at the major origins as the exportable surplus in India andVietnam declined. Next crop from Indonesia should be available in the next four to six weeks withthe main harvesting starting at the end of July. Good yields are expected here, but plantpopulations in one or two areas have reportedly declined, which will moderate the outturn..

The shortage of origin sales has left a tight stock situation in the major markets and the market isfirm with prices reaching historic highs of USD 11,000/tonne for black pepper and USD15,000/tonne for white.

The International Pepper Community (IPC) have reported producer prices as follows:(Indicative prices as received by growers. Based on information received from regional reporters)


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6Market Insider

Spices

Prices in the market place

Spices

All prices are quoted in US$/Kg

MARKET → USA JAPAN EUROPE

PRODUCT GRADE PRICE GRADE PRICE GRADE PRICE

This Week2 Month

ago1 Year Ago

ThisWeek

2 Monthago

1 Year Ago

ThisWeek

2 Monthago 1 Year Ago

Black Pepper

Spot 550g/l 10.80 8.05 Sarawak 12.00 11.50 9.50 Sarawak

Mal MG1 Mal MG-1 12.00 13.00 14.50 FAQ 550g/l 11.00 10.50 8.15

FAQ 500g/l 10.69 Lampung FAQ 500g/l 7.83

Steam treated550g/l

Brazil

White Pepper

Muntok FAQ spot 15.21 12.68 Muntok 15.80 16.50 13.00 Muntok FAQ spot 15.00 14.60 12.55

Sarawak n/a 17.00 16.00Steam treatedMuntok spot

Vietnam 10.36 Vietnam 15.00 14.60 11.15

AniseedWhole China star 6.83 Vietnam Star

Turkish/Syrian 4.63 4.08 Syrian 1% 3.41 3.80

CarawayCanadian 3.09 2.20 FAQ

Dutch European 2.03 1.97

CardamomBold 15.98 India AGS1 MYQ 5.50 5.73

Mixed Green India AGS Whole, green 13.03


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7Market Insider

Spices



This Week2 Month

ago1 Year Ago

ThisWeek

2 Monthago

1 Year Ago

ThisWeek


Cassia

Korintji B 3.00ML/SVO

2.03 China whole 3.70 3.70 3.00 Korintji B Br & Cl 2.85

Vera C/W AA 4.19 4.52 China broken 3.50 3.50 2.80 Vera AA

Vietnamese5ML/SVO

Vietnam QNV 3.80 3.80 3.15

CeleryIndian spot 1.98 Indian Indian 99%

ChiliIndian S4 2.91 2.54 Indian Sanna S4 grade

African fukien 3.97 3.97 Chinese African Bird’s Eye n/a 5.00

CinnamonCeylon H2 12.02 10.36 Sri Lanka C5 SP Sri Lanka c5 cut

Cloves

Sri Lanka handpicked

19.29 17.90 Madagascar 12.20 12.20 15.50Comores /Madagascar

9.50 14.05

Comores/ Mada 12.68 Zanzibar 13.00 13.00 16.00Indo stems

CorianderBulgarian 1.98 98% East European 1.88 1.88

Canadian 1.87

Cumin

Turkish 3.75 2.76 Turkish 98%

Syrian Syrian 99% 2.80 3.15

Indian Indian Indian 99%

Dill Indian 1.81 Indian 99%

FennelFancy Egyptian 2.54 Egyptian99% 2.61

Indian ASTA 1.81 Indian Indian 99% 2.57

Fenugreek Turkey 1.10 Indian 99% 0.62 0.86


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8Market Insider

Spices



This Week2 Month

ago1 Year Ago

ThisWeek

2 Monthago

1 Year Ago

ThisWeek


Garlic

Ch. Powder 2.98 2.38 Flakes 2.00 2.48

Ch. Granulated 3.26 2.60 Powder 1.30 2.09

Granules 2.70 2.34

Ginger

Cochin 5.73 5.29 Cochin Cochin 4.30Chinese sliced Chinese sliced Chinese sliced 4.90

Chinese peeled 5.71 4.63 Chinese whole Chinese peeled 5.20 4.81

Nigerian 3.64 3.20 Nigerian 3.50 2.35

MacePapua broken 25.90 35.27 Siauw whole 18.50 18.50 22.50 PNG Broken 11.50 15.81

Indonesian

Mustard

No 1 YellowCanadian

1.57 1.57 Canada Yellow 1.26 1.36

Brown oriental 1.54 1.54 Canada Brown 1.21 1.31

NutmegE.I. ABCDs 18.08 20.39 Indo 110's 17.50 17.50 20.00 Indonesian SS 11.50 15.20E.I. cracked 18.19 WI 110's

EI ABCDs 16.89

OnionEgypt pow Powder 2.38 2.02

India pow Flakes 3.03 2.43

Paprika

Spanish 120 ASTA

5.18 5.18

Spanish visual Spanish 80 ASTA 2.70

Hungarian 7.17 6.83Hungarian 100 ASTA

Peru ASTA 3.39 2.09 Peru HT90 ASTA


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9Market Insider

Spices



This Week2 Month

ago1 Year Ago

ThisWeek

2 Monthago

1 Year Ago

ThisWeek


PimentoMex/Guatemala 5.07 4.30 Mexican 5.25 5.25 4.50 Mexico 4.00 3.91

Jamaica 11.57 6.95 Jamaica Jamaica n/a 6.24

PoppyDutchTurkish 2.60

Dutch 3.03 4.38

SesameIndian Natural

Indian hulled 2.54 Indian Hulled 2.25

Turmeric

Alleppey 5%curcumin

3.53 Madras fingers 2.10 2.20 1.75 Madras fingers

Alleppey fingers

Vanilla!

Bourbon 53 - 63 Extract/ Gourmet 55 / 65 50.0/70.01 Vanilla – the prices given here are indicative of the value of bulk sales at origin. Selling prices within Europe are substantially higher as they reflect much smaller quantities that may be specially packaged.


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Prices in the market place

Herbs

All prices are quoted in US $/Kg

USA EUROPE

PRODUCT GRADE PRICE GRADE PRICE

ThisWeek

2 Month Ago

1Year Ago

ThisWeek

2 Month Ago

1Year Ago

Basil

Egyptian FAQ 2.76 3.09 Egypt 3.33 2.91

Egyptian Extra Fancy Egypt fines

Bay leaves

Turkish FancyFAQHPS

6.7210.91

Turkish semi select 3.73 3.86Turkish

semi-select5.15

Chervil German 8.42

Dill weed

Egyptian 4.08 1.85 Cut 2.49 2.71

Californian

MarjoramEgypt Fancy 3.64 3.97 Egypt 4.63 3.88


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Statistical information and related resources

Source: USDA/FAS


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18

Events

Event Start Date End Date Country City URL

IFT Food Expo 11/07/2015 14/07/2015 USA Chicago http://www.am-fe.ift.org/

Food Ingredients South America 25/08/2015 27/08/2015 Brazil São Paulo http://www.figlobal.com/southamerica/home

Ingredients Turkey 03/09/2015 06/09/2015 Turkey Istanbul http://www.ite-exhibitions.com/Ingredients-Turkey

Asia Fruit Logistica 02/09/2015 04/09/2015 Hong Kong Hong Kong http://www.asiafruitlogistica.com/

Food Ingredients Asia 09/09/2015 11/09/2015 Thailand Bangkok www.foodingredientsglobal.com/asia-thailand/home

Annapoorna World of Food India 14/09/2015 16/09/2015 India Mumbai http://www.worldoffoodindia.com/

Biofach America 17/09/2015 19/09/2015 USA Baltimore https://www.biofach-america.com/

Fine Food Australia 20/09/2015 23/09/2015 Australia Sydney http://imexmanagement.com/show/138/fine-food-

australia-2015/

Food Hospitality World 22/09/2015 24/09/2015 China Guangzhou http://www.fhwchina.com/en/

ANUGA 10/10/2015 14/10/2015 Germany Cologne http://www.anuga.com/anuga/index-2.php

Food Ingredients India 19/10/2015 21/10/2015 India Mumbai http://www.figlobal.com/india/home

Food & Hotel China 11/11/2015 13/11/2015 China Shanghai http://www.fhcchina.com/en/index.aspFood Ingredients Europe 01/12/2015 03/12/2015 France Paris http://www.figlobal.com/fieurope

SIAL Middle East 07/12/2015 09/12/2015 UAE Abu Dhabi http://www.sialme.com/
http://www.anuga.com/anuga/index-2.phphttp://www.anuga.com/anuga/index-2.phphttp://www.anuga.com/anuga/index-2.php

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ITC Market Insider Spices Report June 2015

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