Prices of a host of spices such as cumin (jeera), coriander (dhania), turmeric, black pepper and dry chilli, have declined from their peak last year, thanks to adequate carry forward stocks and the prospect of a good crop. On an average, prices of spices fell by 7.4% in December on-year.
The average mandi price of cumin seeds (jeera) has declined to Rs 22,200/quintal at present from Rs 65,900/quintal that prevailed in September, 2023 at Unjha (Gujarat), the hub of the trade in anticipation of a bumper harvest, traders said.
Jeera futures for May, 2025 expiry were quoting at Rs 21,775/quintal on the National Commodity and Derivatives Exchange (NCDEX) platform on Friday.
“Prices are expected to decline further with a bumper harvest projected on the back of a bigger area under cultivation and conducive weather conditions,” Dinesh Patel, ex-chairman, Agricultural Produce Market Committee (APMC) and trader from Unjha (Gujarat), told FE.
The production for the 2024-25 crop year is projected at 9 million bags of 25 kg each against 10 million bags previous year. Patel said the carry forward stocks of around 2.5 million bags would keep prices down.
In the country’s largest chilli market in Guntur (Andhra Pradesh), prices on Friday declined to Rs 12,500/quintal on higher production prospects. In the case of turmeric, mandi prices have softened to Rs 14,290/quintal at present from a high of Rs 20,430/quintal in May last year.
“Turmeric mandi prices spiked last year because of reports of possible crop losses. However, the prices have eased since and production prospects for the new harvest looks promising if weather holds good,” Ankit Agarwal, director, Amar Agarwal Foods India, Erode, a Tamil Nadu-based turmeric trader, said. Agarwal said that the prices are expected to hold at the current level and a spike in prices is highly unlikely.
“Since the year 2023, coriander prices have been confined to a range of Rs 9,000-5,900 a quintal; this trend is seen continuing as the year 2025 begins. Prospects of lower acreage and output may cap losses while subdued export demand is seen limiting gains,” Anu V Pai, commodity research analyst, Geojit Financial Services said.
India is the world’s largest consumer and producer of spices. The production of spices was estimated at 11.8 million tonne (MT), marginally lower than previous year.
In FY24, the country exported spices worth $ 4.46 billion. In volume terms, the spices shipments rose by 9% to over 1.53 MT last fiscal, a decline from 1.4 MT in previous year.
Karnataka, Maharashtra, Assam, Odisha, Uttar Pradesh, West Bengal, Tamil Nadu and Kerala are major producers of spices in the country.