Cassia - Vietnam Market

Below is the average price fluctuation of cigarette cassia on market compiled from main cassia factories in Vietnam from 22-Dec-2016 to present.
The low price peaks on chart are that there were factories with surplus goods offered price lower than market at that time.
This Autumn-2019 cassia crop has come but farmers have exploited little because the output rate from fresh to dry is lower than normal, so it is expected that price of cigarette cassia will remain high until the new crop in March 2020.

Mr Vo – TPH

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Hand Picked Cloves 2019 crop

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Dehydrated Green Peppercorns

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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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Kerala farmers back to cardamom cultivation as the price hits a record high

Published: 26th August 2019 



Kerala’s reputation as the land of spices goes back at least 3,000 years. Here, Express delves into the aromatic world of spices with a special focus on Kerala.
By Express News Service

Cardamom, called the queen of spices, proved worthy of its title when it fetched a record price in the market this year and brought good tidings to Kerala farmers who are otherwise affected by the vagaries of the weather.

With the price hitting Rs 6,000/kg, cardamom growing areas saw people buying acres of farms and those who had turned to other crops returning to cultivate the green gold. Kerala’s reputation as the land of spices goes back at least 3,000 years. Here, Express delves into the aromatic world of spices with a special focus on Kerala.

SPICE GARDEN OF INDIA

Kerala is known as the spice garden of  India. It is the largest producer of small cardamom. It is also famous for black pepper, clove, ginger, cinnamon and Malabar tamarind
Though farmers with small holdings do cultivate spices, most of the produce comes from large plantations
Traders from ancient Phoenicia made tours to Kerala to carry back spices to Mediterranean lands. Pepper, cardamom, cinnamon, ginger, cloves and more -- the spices were used to add flavour to food and wine and preserve meat during winters
Apart from traditionally grown spices, Kerala farmers have taken to growing spices such as vanilla, oregano, rosemary, thyme, basil, mint, bay leaf and sage.

YIELD: WHY THE DROP 

In the case of pepper, ginger, turmeric, nutmeg and cardamom, there has been a decrease in productivity in the state due to adverse weather conditions like long dry spells and short periods of intense rainfall
    For cardamom, tropical, hot and humid climates are suitable. Ideal humidity level is 75%. For the past few years, Kerala has been receiving only 40% of its share of summer rainfall.
A deficit of 60% seriously affected the yield
    The long dry spell, at a time when spiking and pollination need to happen, followed by heavy rain led to a drop in yield of both pepper and nutmeg. Flooding spelt doom for nutmeg plantations in major production centres like Ernakulam
In the case of ginger, the huge disparity in market price and the cost of production saw many farmers ditching the crop. Ginger farmers from Kerala have shifted to Karnataka’s Western Ghats districts and Malenadu region. Ginger crop is disease-prone.


PRICE: WHY THE RISE

The sudden spurt in cardamom prices has been due to the fall in production, says Dr Muthuswamy Murugan, professor and HoD, Cardamom Research Station at Pampadumpara in Idukki. “Due to adverse weather conditions, the production has fallen by 25% to 35%.”
Production of green cardamom has fallen from 25,000 tonnes to 10,000 to 12,000 tonnes in the past few years.
The average price of cardamom reached Rs 4,000 this season and it presently commands a price of Rs 2,900 to Rs 3,000 per kg.
In the case of nutmeg and pepper, the price is holding steady though there is competition from imports.

EXPORTS: REASONS TO WORRY

India has a 45% share in the global market for spices, but concerns over adulteration and excess pesticide use are posing a threat
Several countries have already raised complaints  – want India to ensure quality or lose business.
According to Dr Muthuswamy Murugan, the export of spices, especially cardamom, will not see a surge in the future due to the huge amount of pesticides being used by farmers.
According to Jojo George, MD, KCPMC Agrisolutions, the low exports have not hit spice traders. “The domestic market is robust and the huge demand in the country for small cardamom has kept the trade on an upward swing.”


Indian spices have been able to record huge gains in volume and value. Spice exports have recorded substantial growth in the past five years. During 2017-18, a total of 10,28,060 tonnes of spices and spice products valued at Rs 17,929.55 crore were exported from the country as against 9,47,790 tonnes valued at around Rs 17,600 crore during 2016-17 _ thus registering an 8% increase in volume.

Export figures of major spices in 2017-18

    16,840 tonnes Pepper
    5,680 tonnes Cardamom(small)
    22,605 tonnes Ginger
    1,07,300 tonnes Turmeric
    5,500 tonnesNutmeg and mace

http://www.newindianexpress.com/states/kerala/2019/aug/26/kerala-farmers-back-to-cardamom-cultivation-as-the-price-hits-a-record-high-2024295.html


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IPC MKT REPORT 34/19, 19 August - 23 August 2019

Local Market

Market this week showed mixed response with a rather stable outlook as only Malaysia recorded deficit. In local market, Malabar black pepper was reported stable with an average of USD 4,692 per Mt. Indonesia black pepper was also reported steady with an average of USD 1,896 per Mt. Whilst, Indonesia white pepper was reported with an increase of 1% as compared with the previous week, averaging at USD 3,406 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,500 per Kg increasing marginally by IDR 500 per Kg. This week, Malaysian black and white pepper was reported with a decrease by 3% and 1% respectively as opposed to the previous week averaging at USD 2,267 per Mt for black pepper and USD 3,840 per Mt for white pepper.
Viet Nam black and white pepper were reported stable and unchanged.
Sri Lanka black pepper reported with an increase by 1% as compared to the previous week averaging at USD 2,509 per Mt while China white pepper was reported stable with an average of USD 4,795 per Mt.

International Market
In international market, FOB price of India black pepper was reported steady with an average of USD 4,971 per Mt.
Indonesia black pepper was reported stable and unchanged. Whilst, Indonesia white pepper was traded with 1% increase as compared to the previous week with an average of USD 4,026 per Mt. Contrary to the farm gate price, Malaysia FOB prices for black and white pepper continued stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable averaging at USD 2,270 per Mt, USD 2,335 per Mt and USD 3,420 per Mt respectively.
China white pepper was also reported stable and unchanged averaging at USD 4,995 per Mt.

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IPC MARKET REPORT 33/19, 12 August - 16 August 2019

Local Market
Market this week showed mixed response with a rather negative outlook.
In local market, Malabar black pepper was traded with 2% deficit as compared to the previous week with an average of USD 4,679 per Mt.
Indonesia black pepper was reported steady with an average of USD 1,894 per Mt. Following the arrival of new crop, Indonesia white pepper was reported with a slight 1% deficit as opposed to the previous week averaging at USD 3,366 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,000 per Kg
Malaysian black and white pepper were reported stable with an average of USD 2,340 per Mt for black pepper and USD 3,860 per Mt for white pepper.
Viet Nam black and white pepper were also reported stable and unchanged.
Following the end of harverst season both in Sri Lanka and China, Sri Lanka black pepper and China white pepper were traded with the same 2% deficit as compared with the previous week with an average of USD 2,493 per Mt and USD 4,790 per Mt respec tively.

International market
In international market, FOB price of India black pepper was reported with the same 2% deficit as compared to the previous week at an average of USD 4,960 per Mt.
Indonesia black pepper was reported stable and unchanged. Whilst Indonesia white pepper was traded with 1% deficit as compared to the previous week with an average of USD 3,982 per Mt.
Malaysia black and white pepper continued stable and unchanged.
Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase by 1% as compared to the previous week averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively.
China white pepper was traded internationally with 2% deficit as opposed to the previous week at an average of USD 4,990 per Mt. The decrease in price of China white pepper aside from the effect of harvest season, it was also contributed by the slight weakening of Chinese Yuan against US Dollar.



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