The first week of September brought in a mixed reaction from traders and farmers alike in the commodity market due to the unstable nature of pricing. Despite the steady rise in most spices and grain prices in the last week, things changed as the week progressed.
Spices like Cumin Seeds and Black Pepper remained steady in the market, along with Peanut and Chickpeas in grains. The only increase in price was experienced by Sesame seeds, Cardamom and Turmeric. On the other hand, red Chilli and Coriander seeds prices plummeted this week.
It had been reported that the reasons for cumin seeds and black pepper prices remaining steady despite the lack of export and overall domestic demand is the festive fever and speculator activity in the market for these items. Cumin A Grade 99% opened the week at $2,19 per kg FOB and closed at the same price. It reached this pricing on August 25 and had stayed the same.
On the other hand, Black Pepper rose to the present price, i.e., $5,26 per kg FOB, on August 26 and held it till the market closed this week. Despite having a bullish phase before the price picked up because of lockdown in Vietnam due to the rising COVID-19 cases in the country.
Peanut and Chickpea also maintained the price this week at $1,31 per kg FOB and $1,36 per kg FOB, respectively. It is believed that peanut prices might suffer in the coming days due to the decline in export. However, higher freight rates might positively impact the market as it might sell for an improved price. Chickpea demand remained steady in the market along with peanuts due to the arrival of the festive season.
Another commodity that experienced a significant price increase this week was Sesame seed. It opened the week at $1,39 per kg FOB and closed at $1,51 per kg FOB. The reason was less availability of the seeds in the market amidst strong demand due to the starting of the festival season.
Cardamom and Turmeric, too, experienced a price increase this week. Cardamom rose from $24,02 per kg FOB to $23,05 per kg FOB, which is not that significant. The price shift was due to the demand for a higher quality product after a gap of a couple of days due to the Janmashtami holiday. The prices are expected to keep steady due to the festival season.
Similarly, the price increase in Turmeric from $1,20 per kg FOB to $1,21 per kg FOB was due to the arrival of good quality products in the market.
Red Chilli market suffered considerably this week. After it opened at $2,10 per kg FOB, it decreased to $2,07 per kg FOB. According to traders, the scarcity of good quality products resulted in prices plummeting.
On the other hand, coriander seed prices decreased from $1,05 per kg FOB to $1,05 per kg FOB due to the declining domestic demand from Bengal, Bihar, and even the south of India. Also, the unavailability of better-quality products affected the prices of coriander seeds.
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