Cloves Indonesian Crop

Indonesian Clove is gradually taking the centerstage while Madagascar offers are getting fewer by the day.
After three years of crop failure, it looks like this year we should witness a reasonably good crop.
There were about 4 months of extreme summer, with temperature touching almost 40 degrees Celsius. Thereafter, rains have started past one month. This could be an ideal situation for a good crop.
In a month or so, we should start getting fresh arrivals.
Crop is localized, to the extent that while one village has harvest, the adjacent one does not have one. Hence, it is difficult to say at this point what will be the total crop. And for sure the levels will not go down to that of 2020.

Price indication around U$ 9,500

Soumen Pt. Mahalaya Agri Corp Surabaya, Indonesia 

Cloves Market Latest News

 


Royal Golden's Cloves Market Latest News
By Parsram Dhirani

Madagascar - With weeks of slow progression of incoming new crop from field, goods are now reportedly seen starting to arrive in good flow from North and Tamatave areas. The arriving crop seems promising in terms of colours despite few areas reporting having small buds. According to shippers, few weeks from now, quality will be perfect alongside volume distribution from Tamatave that will finally increase. However, some buyers on site who are allegedly monitoring the field are still not able to procure enough cargo with export license that is still under renewal process. Most major sellers are still abstaining from selling until the license is released from their government. While some are able to offer, buyer must be willing to pay a premium price. Local price from North bushes still between MGA 25,000 – 25,500 while from Tamatave it is now at about MGA 30,000 with indicative FOB export price ranging from $7500 (pmt) and up.

Comoros from few days of holding their offers, finally came back in market by ending week 45. Price indication about $7200 pmt which is much supportive compared to Madagascar.

Sri Lanka still experiencing extreme weather events that could affect cropping patterns by December harvest. Price indication about $7100 -7200 pmt.

Brazil is completely absent.

At the moment, it is Madagascar versus Comoros. The latter as an active and leading contender compared to the other (at least) in terms of pricing. However, for those buyers who still value quality over price, choosing Madagascar is a ‘no brainer.’

On overall market sentiments, while others sporadically cover their urgent needs, the current economic condition overrides the optimism of some to openly participate and would rather stay on side line until the right buying time comes.

CLOVES MARKET REPORT MAY 31, 2021

 

JUST GOT THE REPORT BELOW PRODUCED BY ROYAL GOLDEN CO
FOUND IT VERY SERIOUS AND USEFULL THEREFORE WE ARE POSTING IT FOR YOUR INFORMATION

Author: Parsram Dhirani

A few months ago, we have heard vague news of lower output of Indonesian cloves which have now turned into a reality.
It resulted a spike in prices by 20-30% in a span of 2 weeks.

Indonesia experiencing one of the bad crop seasons due to excessive rains for the last several months (up until now).
Small islands are reporting crop size as low as 25%, while the arrival at big island is negligibleand several news of 50-60% crop damaged at big and major cloves producing islands.

Jawa Island normally has its crops in May - July, however, this year, there has been no report of new cloves in the producing regions. Even though cloves from Jawa are mainly for the consumption of cigarette companies, bad output from Jawa adds more pressure to the cigarette companies to buy whatever cloves are available in the market, including the Lal Pari cloves which are usually for export.

Realizing this dreadful fact of lower output, large and medium kretek companies introduced a high opening prices to procure material as much as possible.
However, traders and farmers who are very aware of the situation declined to supply at their asking levels.
This made factories increase their prices more.
Many farmers and holders prefer to hold for better prices in coming time.

India which is the second biggest consumer of cloves is facing extreme difficulty in finding replacement at lower levels.
Hence, prices at spot market are rising on daily basis.
Three to five months more of supply vacuum at destination markets such as India and elsewhere may result more hike in spot prices.

Crop of 3000-4000 tons from Comoros Island shall start in the month of July.
According to sources, Chinese who sold their excess stock from China to
Indonesia and Singapore are now very active in Comoros market to procure as
much as possible in the beginning of the season.

Zanzibar produces 4000 tons, and we may see similar number this year as well
in July. We do not have more information except some issues on quality of
cloves last year and those disputes remain unresolved .

A very small remaining quantity of Brazil cloves is being offered in the range of
8500-9000. Their new crop shall start in November/December.

Sri Lanka is at end of their crop and has quickly adjusted their prices with the
international levels.

Madagascar may bring some relief in supply (not necessarily in prices) when
they harvest their new crop in the month of September/October. At this stage,
crop is expected to be decent.

Observation & Analysis

*There is no major source of supply of cloves till Sept/Oct.

*Spot prices at destination markets or centers may rise further till lower prices cargo arrives.

*Other less consuming markets seem to be very active as well.

*Speculative activity is also pushing prices to some extent.

*However, this time, it is more of an economic theory of supply and demand that is playing its
role to bring prices at equilibrium levels.

*In 2011, due to lower production in Indonesia, market touched historically high and Indonesia bought cloves from many parts of the world.
2021 crop is substantially and sharply down as well.

Can 2011 situation repeat itself in 2021?

INDONESIA CLOVES MKT INFORMATION

June25/2020

COVID cases are increasing by the day and there is no sign of plateau yet.
Currently there are about 48000 official cases with around 2500 deaths. Mind you, these are “official” statistics.
Meanwhile, due to the Dollar weakening and Fiscal Stimulus, IDR is getting stronger.
It went up all the way to 13900 and currently hovering around 14200 levels against the Dollar. Basically, a correction of about 7% in the short term and 14% in the Medium Term!

Island wise lockdown is still in force, although the new normal is underway in cities like Jakarta.
As a result of this, container, cargo as well as labor availability remains as a challenge.

Cloves:
Arrivals haven’t started yet.
Contrary to the belief of many that Indonesia will have another big crop like last year, it seems that it is not as big as was initially expected.
Making matters worse, there is an acute crisis of Labor.
Thumb rule is, at any growing area of Clove, there are more tree than people to pick the cloves. As a result of this, Clove owners tend to outsource people from adjoining islands during the picking season.
Now that most of the islands are following their self-imposed exile or 14 days of Quarantine, there is a strong possibility that net availability of cloves will remain low even at the peak season.
We also heard that one of the big boys has either started to purchase or will start soon. But the
exact time and quantity is difficult to predict.

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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 -FINAL

PART 2 - FINAL

#CLOVES #INDONESIA EXPORT FIGURES, PRICES


As the top producers of cloves in the world, Indonesia actively exports cloves to various countries. In 2017, Indonesia was reported to have exported a total of 9,089 Mt of cloves from which 95% or 8,675 Mt of it comprised of whole cloves and 5% or 414 Mt of it ground cloves. Indonesia on average exported a total of 757 Mt per month which peaked in February with 1,484 Mt. The total revenue of Indonesia’s export of cloves in 2017 was reported to be as high as USD 28.9 Million. Thus, recording an average price of the total cloves exported by Indonesia at USD 3,104 per Mt for whole cloves and USD 4,823 per Mt for ground cloves.
Year 2018 saw an increase in term of quantity of cloves exported by Indonesia. Indonesia was reported to have exported a total of 20,246 Mt of which 95% or 19,183 Mt of it comprised of whole cloves and 5% or 1,063 Mt of it ground cloves, recording a total increase of 123% when compared with 2017. The average export of cloves by Indonesia in 2018 was reported to be at 1,687 Mt per month which peaked in November with 5,132 Mt. In accordance with increasing in terms of quantity, Indonesia’s revenue from cloves export was reported to have increased by 252% to a total of USD 101.7 Million as compared to the previous year. Thus, recording an average price of the total cloves exported by Indonesia at USD 4,995 per Mt for whole cloves and USD 5,581 per Mt for ground cloves or an increase of 61% and 16% respectively as compared with 2017.

In 2019, Indonesia was reported to have exported a total of 25,990 Mt of which 96% or 24,971 Mt of it comprised of whole cloves and 4% or 1,019 Mt of it ground cloves. Thus, recording a total increase of 28% when compared to 2018. By the end of 2019, the total revenue of cloves export by Indonesia was reported to have reached USD 111.5 Million, recording an increase of 10% as compared to 2018. The average price of the total cloves exported by Indonesia in 2019 was reported at USD 4,289 per Mt for whole cloves and 4,346 per Mt for ground clovesor a decrease by 14% and 22% respectively as compared with 2018.

Furthermore, in the past three years export of cloves and pepper by Indonesia had been reported with an increase. Although Indonesia is the world largest cloves producer in the world, export quantity and value of cloves from Indonesia was reported to be inferior to pepper export. The total quantity of cloves export in the past three years was reported at 55,326 Mt whilst the total quantity of pepper export was reported with 142,082 Mt. Thus, recording the annual ratio quantity of Indonesia export between cloves and pepper during 2017-2019 at 1:5, 1:2 and 1:2 respectively. The total value of cloves export in the past three years was reported as high as USD 242.2 Million whilst the total value of pepper export was reported as high as USD 535.7 Million. Thus, recording the annual ratio value of Indonesia export between cloves and pepper during 2017-2019 at 1:8, 1:1 and 1:1 per year respectively

During 2017-2019, the average export price of cloves for both whole and ground by Indonesia had fluctuated (Table 8). In 2017, the average export prices of cloves by Indonesia was recorded at USD 3,263 per Mt for whole cloves and USD 6,780 per Mt for ground cloves. The highest average export price of cloves from Indonesia in 2017 was recorded in September with USD 5,439 per Mt for whole cloves and in November with USD 15,452 per Mt for ground cloves whilst the lowest average export price was recorded in June with USD 1,635 per Mt for whole cloves and in March with only USD 922 per Mt for ground cloves.

Year 2018, saw an increase in the average export price for both whole and ground cloves by Indonesia, the average export prices of whole cloves by Indonesia was reported at USD 5,062 per Mt for whole cloves and USD 9,008 per Mt for ground cloves. Thus, recording an increase of 55% and 33% respectively when compared to 2017. The highest average export price of cloves from Indonesia in 2018 was recorded in February with USD 6,256 per Mt for whole cloves and USD 28,845 per Mt for ground cloves which also occurred in the same month. Whilst, the lowest average export price was recorded in May with USD 3,506 per Mt for whole cloves and in April with USD 2,080 per Mt for ground cloves.

Contrary with 2018, the average export prices of cloves by Indonesia in 2019 saw a decreasing trend. The average export prices of whole cloves by Indonesia was reported at USD 4,333 per Mt for whole cloves and USD 4,526 per Mt for ground cloves.Thus, recording a decrease by 14% and 50% respectively when compared to 2018. The highest average export price of cloves by Indonesia in 2019 was recorded in June with USD 5,248 per Mt for whole cloves and in December with USD 10,714 per Mt for ground cloves. Whilst, the lowest average export price of cloves was recorded in December with USD 3,538 per Mt for whole cloves and in November with only USD 975 per Mt for ground cloves

Cloves export by Indonesia was reported to be shipped through ports and airports all over the Indonesia such as Java, Sumatera, Sulawesi and Bali (Table 9). Based on the port of origin, the top five origins for cloves export by Indonesia in 2019 were reported to be Port of Tanjung Perak, Surabaya with 23,108 Mt (contributed to 89% of the total export from Indonesia), Port of Tanjung Priok, Jakarta with 1,204 Mt (5%), Port of Tanjung Emas, Semarang with 985 Mt (4%), Port of Belawan, Medan with 304 Mt (1%) and Port of Panjang, Lampung with 232 Mt (1%). Furthermore, cloves export from Indonesia was also reported to be flown through airport such as Juanda (Surabaya), Ngurah Rai (Bali), Soekarno-Hatta (Jakarta) and Kuala Namu (Medan) though its quantity was insignificant when compared to quantity of cloves export through the ports.

Cloves from Indonesia are globally traded in Asia, America, Africa and European Countries (Table 10). In 2019, Indonesia’s top 5 Country of destinations for its cloves were reported to be India with 9,638 Mt (an increase of 115% as compared with 2018), Viet Nam with 2,158 Mt (a decrease of 59%), Saudi Arabia with 2,100 Mt (an increase of 17%), United Arab Emirates with 1,820 Mt (an increase of 125%) and Pakistan with 1,559 Mt (an increase of 2%). In terms of value, Indonesia’s top 5 contributors for its cloves export revenue were reported to be India with USD 34.8 Million, Saudi Arabia with 12.3 Million,United Arab Emirates with 8.6 Million, Singapore with USD 8.2 Million and Pakistan with 7.0 Million

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

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IPC SPECIAL ISSUE ON CLOVES - FEBRUARY, 2020 PART 1

#CLOVES #INDONESIA

A little bit of History


The distribution of clove plants out of the Moluccas began in 1769. The spread of clove plants to regions of Indonesia such as Java, Sumatra and Kalimantan began in 1870. Today, clove plants have spread throughout the world.

Producing Areas

In 2019, the top 10 largest area of cloves cultivation were estimated to be North Sulawesi Province with 74,940 Ha, Central Sulawesi Province with 71,704 Ha, South Sulawesi Province with 63,136 Ha, East Java Province with 46,043 Ha, Maluku Province with 44,161 Ha, Central Java Province with 42,037 Ha, West Java Province with 35,697 Ha, South East Sulawesi with 31,388 Ha, Aceh Province with 25,530 Ha and North Maluku Province with 21,157 Ha.

Harvest in Indonesia

Harvest season in various producing area in Indonesia varied depending on the local climatic conditions. In Sumatra Island: flower buds grow between October - November and the harvest season is around April - June. Whilst, in Java Island: flower buds grow from November to January, so the harvest falls in May - July. In Maluku Island: flower buds grow between May - July and harvest season is between October - January. Whilst, in other areas the harvest occurred between July - October. Though, generally clove flowering and harvesting in Indonesia occur once a year, the harvest lasts a minimum of three months. Normally, cloves planting at 15 - 20 years of age would be able to produce around 3 kg per tree.

Uses of Cloves in Indonesia

In 2018, Indonesia as the largest producer of cloves in the world contributed to 74% or 123,399 Mt of global production and followed by Madagascar with 14% or 23,325 Mt. Since the 21st century, Indonesia became the largest cloves producer and consumer countries. Cloves in Indonesia are mostly used to supply the cigarette factories. Therefore, from the industrial side, Indonesia domestic production has met the needs of the processing sector. Furthermore, in 2019 the need for processing sector was estimated at 110,000 Mt which was around 83% of the total production and was fully absorbed by cigarette companies such as PT. Djarum Kudus, PT. Gudang Garam, PT. Sampoerna, etc.

Area of Production

The area under cloves cultivation in Indonesia fluctuated with a rather increasing trend. During 1961-2018 Indonesia area of plantation was reported with significant increase of 541,212 Ha. The average increase of cloves area of plantation in the course of half century was recorded 9% per year with the highest increase recorded in 1968 with an increase of 96% as compared with the previous year. In 2018, the area under cloves cultivation in Indonesia recorded the largest ever in the history with a total of 561,212 Ha, recording an increase of 2% when compared to 2017. Furthermore, for the year 2019 the area under cloves cultivation was estimated to increase by 2% to 571,305 Ha. The increase in the area of cloves plantation could be contributed to the massive cloves demand from domestic and international cloves market (Table 2).

Production of Cloves

Indonesian production of cloves during 1961-2018 was also fluctuated with a rather positive trend, recording an increase of 116,399 Mt to a total of 123,399 Mt in 2018. The average increase of cloves production in the past 58 year was reported by 11% per year with the highest increase recorded in 1966 with an increase of 103% as compared to the previous year. Furthermore, the highest production of Indonesia cloves was reported in 2015 with 139,641 Mt whilst the lowest occurred in 1962 with only 6,600 Mt. In addition, production of Indonesia cloves in 2019 was estimated to decrease by 3% when compared to 2018 to a total of 120,000 Mt.

Productivity

Cloves productivity in Indonesia during 1961-2018 was reported to be fluctuated with a rather stable trend. In the past 3 years cloves productivity in Indonesia saw decreasing trend to a total of 220 Kg per Ha in 2018. Since 1961 to 2018, cloves productivity in Indonesia was reported with a decrease by 37%. The average increase of cloves productivity in Indonesia was reported at 2% per year and the highest was reported in 1973 with 483 Kg per Ha whilst the lowest occurred in 1985 with only 144 Kg per Ha (Table 3). Furthermore, in 2019, Indonesia cloves productivity was estimated at 210 Kg per Ha or a decrease of 4% as compared to 2018. Despite Indonesian Government efforts in recent years developing a superior seed of clove which could be used by planters to replanting old or damaged plants andalso to boost the productivity of cloves plantations as well as the Directorate General of Plantations of Indonesia application of good agricultural practices (GAP) to clove plantation in vario us clove producing area, Indonesia's clove productivity was yet to show an increase trend following a decreasing streak which started in 2016.

SEE NEXT TOMORROW - EXPORTS & PRICES

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia

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IPC- SPECIAL ISSUE ON CLOVE - FEBRUARY, 2020 EXTRACT

Starting this week we´ll be publishing a comprehensive report about Cloves Market, docused on Indonesia.
Due to extension of the information we are publishing extracts with important information.
Follow us next week to get a comprehensive picture of present days Cloves Situation.

This report was elaborated under the supervision of International Pepper Community and information provided by the sources below:
- International Trade Centre (ITC) - Geneva
- Food and Agricultural Organization (FAO)
- Agricultural Commodity Export-Import Database, Ministry of Agriculture of the Republic of Indonesia
- Agricultural Commodity Price Information, Ministry of Agriculture of the Republic of Indonesia
- Directorate General of Estate Crops, Ministry of Agriculture of the Republic of Indonesia


SUMMARIZING

Farm gate price of cloves in Indonesia in the first quarter of 2019 fluctuated with a rather negatively outlook (Table 12). During that period, in several regency of cloves producer, clove farm gate price was reported to have recorded the highest price with IDR 100,000 per Kg (USD 7.0 per Kg) in January and February at Bima Regency and in January at Cianjur Regency, whilst the lowest price occurred in February at Ende Regency with only IDR 79,000 per Kg (USD 5.6 per Kg). Furthermore, the average farm gate price of cloves in most regions in Indonesia during January-April 2019 was recorded at IDR 85,139 per Kg (USD 6.02 per Kg).

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CHECK NEXT WEEK FOR THE FULL REPORT

Brazilian Cloves Crop & Market

New Cloves crop in Bahia is a step away of start harvesting

Prices are high at the moment for what is left from the last season - around R$ 24.00 per kilo small lots and weak quality sold to local consumption. If processed for export a loss of 30% should be considered for cleaning, selecting and packing.
In dolar terms it corresponds today to U$ 6.00/kg. (1U$ = 4R$)

Regarding international trade Brazilian cloves ever follows the price trend of MZC origin with some discount depending on the volumes offered and demanded.

The 2019/2020 crop forecast is estimated at a maximum of 5 thousand tons and if realized will be an average crop. Must be considered that some 700 to 800 tons are sold to the local consumption

The maximum harvested in Brazil was in 2013 and reached 9 thousand tons.

ORION FEITOSA

Spice purveyor Schiff acquires Golombeck in expansion move

By Emily Bader
Totowa | Sep 5, 2019 at 5:00 am


Schiff Foods, a Totowa-based purveyor of whole spices, ground spices and seasonings, announced Wednesday it has acquired Morris J. Golombeck, a Brooklyn-based importer and exporter of high-quality spices and herbs.

Schiff, which was founded in 1949 selling food condiments in Brooklyn, moved to Totowa in 1998 to expand its business to include seeds, herbs, dehydrated vegetables, onion and garlic, seasoning blends, and more. It currently has a 300,000-square-foot warehouse with 30,000 square feet of cold storage dedicated to delicate spices and 15,000 square feet for production.

The combined companies will increase Schiff’s capacity, flexibility and technology, it said.

“The shared values and common goals of Schiff and Golombeck makes this alliance a formidable entity that will anchor our position as a major source for quality spices,” a spokesperson for Schiff Foods said. “The Golombeck team will continue to be an integral part of the Schiff management team, assuring customers that they will continue to enjoy the same personal relationships they have come to expect from an industry leader.”

The main warehouse in Totowa will be expanded and upgraded further to streamline production and distribution, the spokesperson said.

Financial terms were not disclosed.

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Hand Picked Cloves 2019 crop

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SRI LANKA - Spices industry affected by falling prices

 The biggest problem faced by the spices industry is the present declining prices, lamented Rumesh Jayasuriya, Chairman, Spices and Allied Products Producers and Traders Association (SPPTA), speaking at the 35th AGM of the SPPTA held at Ramada Hotel Colombo, last week.

By Quintus Perera
27 August 2019

The biggest problem faced by the spices industry is the present declining prices, lamented Rumesh Jayasuriya, Chairman, Spices and Allied Products Producers and Traders Association (SPPTA), speaking at the 35th AGM of the SPPTA held at Ramada Hotel Colombo, last week.

He pointed out that the industry has to improve unrestrained innovation and show continuous improvements among growers, plantations, processors, brokers, exporters, etc and noted that the international market has been transformed into a borderless technology-driven market place.

He indicated that the consumers world over are knowledgeable and discerning as they wanted experiences and products that reflect their fast-paced lifestyles and convenience. 

On the sidelines of the event, Mr. Jayasuriya told the Business Times that the decrease in the pepper prices could be identified as the main reason for the downfall of spices prices as the Indian Government has imposed a minimum import price (MIP) for black pepper.  That is Indian Rs. 500 (Rs.1,250) per kg exported to India.

The imposition of this MIP, he said has made it technically difficult now to export black pepper to India and asserted that earlier these exports were not subject to a MIP in India. He said that the industry is rather concerned of this new development and blamed the government for not negotiating with the Indian Government for its removal.

He said that the delay in the certificate by ISFTA (Into-Sri Lanka Free Trade Agreement) and the SFTA (South Asian Free Trade Agreement) to certain spices such as nutmeg and pepper is also another constraint.

The high cost of production is also another issue where they find difficulties in competing in the international market, as he said that the cost of production is very low in other exporting countries.

He said that there is another danger emerging – that is the illegal importation of spices as there were several occasions of such imports being detected.  He was worried that there is no proper legal mechanism to stop illegal import of spices and no proper legal action has been taken to punish those wrongdoers. 

More than 70 per cent of spice exports are to Asian and West Asian destinations while the balance goes to Europe and North America, he said.

Dr. A.P. Heenkende, Director General, Department of Export Agriculture, in his keynote address said that despite challenges, spice and allied products is a major contributor in exports.

It was 48,331 metric tonnes (Mt) in 2018 compared to 59,000 Mt in 2017 with the drop attributed to the decline in the export of cloves and Areca nuts. Cinnamon exports grew from around 2016. 

He said that US was the main buyer of Cinnamon leaf and bark oils, Citronella oil, Ginger oil and Lemon grass oil in 2018. France, Canada, India, Spain and Germany were the main buyers of Cardamom oil, Clove oil, Nutmeg oil, Pepper oil and Vanilla oil in 2018.

The average annual farm-gate price of Coffee, Clove, Cinnamon quills, Mace, Cardamom and Betel had increased in 2018 while betel exports registered a high price in 2018, he indicated.

He cautioned that Sri Lanka has to rethink on how to find a long term solution for this major problem in the spice sector and said that the government has taken policy decisions regarding the complete ban on imports of Cinnamon, black pepper, Nutmeg, Turmeric and Areca nut.

Ghulam Chatoor, Founder Chairman, SAPPTA, was the guest of honour at the occasion.

http://www.sundaytimes.lk/article/1100123/spices-industry-affected-by-falling-prices




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India Spices: Wednesday, Aug 14

By Preeti Bhagat

NEW DELHI – Futures contracts of all spices on domestic exchanges, barring mentha oil and jeera, ended lower today.

Coriander futures on National Commodity and Derivatives Exchange hit a 10-week low of 5,810 rupees per 100 kg because of imports from Ukraine, Russia and Bulgaria, said Kamal Vijayvargia, a Kota-based dealer.
"Weather is very favourable right now for next season's sowing, which is a negative factor for prices… Imports have also risen a lot and are coming into India at $650 per tn," he said.

Contracts of jeera ended higher as investors covered their short positions after prices hit an over four-month low of 16,810 rupees per 100 kg in early trade today.
The rise in prices today was also because arrivals in Gujarat's Unjha market fell by 4,000 bags (1 bag = 55 kg) to 6,000 bags, said Mahesh Yadav, a local dealer.

Turmeric futures ended in the red because of profit booking after prices hit a three-week high of 7,198 rupees a 100 kg on Tuesday.

Futures contracts of mentha oil on Multi Commodity Exchange hit a two-month high of 1,324 rupees per kg due to strong demand from domestic stockists and pharmaceutical companies, said Rajiv Gupta, a Sambhal-based spice oil trader.

Cardamom futures hit the 4% maximum lower circuit today as heavy rainfall in Kerala is likely to help plantations with better fruit formation and growth, traders said.

Heavy-to-very heavy rainfall is likely over Kerala during the next 48 hours due to a cyclonic circulation over northwest Arabian Sea, India Meteorological Department said. It also issued a 'red alert' for the state today.

On Indian Commodity Exchange, the August pepper contract traded lower following reports that the Sri Lankan government is likely to hold talks with India for relaxing the minimum import price of the spice.
Currently, Sri Lankan exports up to 2,500 tn of pepper to India at zero duty under the Indo-Sri Lankan Free Trade Agreement. Exports over and above this quantity are subject to 8% duty under the South Asia Free Trade Agreement.


This copy was first published on the Cogencis WorkStation
© Cogencis Information Services Ltd. 2019. All rights reserved.



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Cloves Indonesia

Cloves prices expected to move up in Indonesia

Cloves market which was running quite subdued for a long time, saw some action last week as Indonesia cigarette companies covered almost 25,000 mts at IDR 80,000/- levels farm gate price from farmers/collectors.

This led to prices moving up in Indonesia and exporters who were very keen to sell, have now withdrawn offers and waiting for market to stabilize before giving fresh offers/taking orders.

Local exporters believe cigarette companies may again enter markets to cover some more quantities at these attractive levels.

This report by anonimus (broker from India)