Weekly Spices Wrap Up: Black Pepper Extends Gains, Short Covering And Strong Export Data supports Chilli

Black pepper extended the gains with the April contract on NCDEX ending the week higher by around 3% at Rs. 25110 and the open interest dipped 21% to 6,995 tonnes. Lower arrivals, strong domestic demand and hopes of export orders continued to support the black gold.

Benchmark April Yellow spice contract ended the week higher by 1.23% at Rs. 9876 and the open interest added 2.06% to 7,030 tonnes. Bargain buying at lower levels and also due to the lack of fresh cues from the spot markets due to the year end closure supported range bound to firm sentiment in the spices markets.

Reports of continued growth in the exports of Chilli and heavy short covering at lower levels supported Red Chilli to close with gains. The benchmark April contract on NCDEX closed the week with gain of around 3.65 % at Rs. 8,730 per 100 kg.

Jeera for the April delivery ended the week with loss of 0.80% at Rs. 15,766 on some profit taking. Failure to move above the strong technical the resistance level of Rs. 17,000 and lack fresh arrivals from the spot market due to close limited upside.

Cardamom ended the with nominal gains with the April contract ended the week higher by 0.13% at Rs. 1,107.20 a kg and the open interest dipped 15.20% to 1,250 tonnes. Some lower level buying supported the cardamom to settle with nominal gains.

Major Events During The Week:

India Spices Exports Up 19% In Value Terms During April-Feb 2010-11

Exports of spices and spices products from India have registered an increase of four per cent in volume and 19 per cent in terms of value during April-February 2010-11, as per the latest release from the Spices Board of India. In dollar terms the rise in exports is 24 per cent.

A total of 471,165 tonnes of spices and spice products valued Rs. 6030.74 crores (US$1323.28 Million) got exported from the country as against 453,495 tonnes valued Rs.5058.26 crores (US$ 1063.44 Million) in April-February 2009-10.The spices exports during the period have also surpassed last year's exports of Rs. 5560.50 crores.

Indian Chilli Continues To Preferred In The Global Markets, Pepper Exports Up In Value Terms

During April-February 2010-11, a total quantity of 16,600 tonnes of pepper valued Rs.334.62 crores was exported as against 18,425 tonnes valued Rs. 293.00 crores of last year. The unit value of pepper has increased from Rs. 159.02 per kg in 2009-10 to Rs. 201.58 per kg during 2010-11.

Coriander exports slumped by 9% to 37,500 tonnes while earnings dipped 26%to Rs.149.98 crores. A total quantity of 865 tonnes of cardamom (Small) valued Rs. 100.41 crores as against 1765 tonnes valued Rs. 143.62 crores of last year. In the case of cardamom (Small) the unit value has increased from Rs. 813.59 per Kg in 2009-10 to Rs.1160.84 per kg in 2010-11.

A total quantity of 2,18,500 tonnes of chilli valued Rs. 1379.52 crores have been exported as against 1,80,750 tonnes valued Rs. 1156.57 crores of last year, registering an increase of 21 per cent in quantity and 19 per cent in value. Exports of turmeric was down around 9% to 42,500 tonnes with value of exports was up by 78% to Rs. 608.85 crores. We have exported 12,000 tonnes of ginger valued Rs. 77.29 crores as against 5,100 tonnes valuedRs. 41.51crores of last year registering an increase of 135 per cent in quantity and 86 per cent in value.

The export of spice oils and oleoresins has also increased to 6,800 tonnes valued Rs.803.02crores from 6,225 tonnes valued Rs. 651.68 crores of last year. We have exported 13,250 tonnes of curry powder/paste valued Rs. 178.76 crores as against 13,100 tonnes valued Rs. 173.30 crores of last year. Jeera exports dipped 39% to 27,500 tonnes and earnings also dipped by 33% to Rs. 333.72 crores.

	TARGET FOR	APRIL - FEBRUARY 2010-11	% CHANGE IN
ITEM	2010 - 11 (*)	QTY	VALUE	RATE	2010 - 11
	(QTY TONNES)	VALUE	(TONNES)	(Rs.LAKHS)	(Rs/Kg)	QTY	VALUE
PEPPER	20,000	30000	16,600	33,462.25	201.58	-10%	14%
CARDAMOM(S)	1,000	7500	865	10,041.25	1160.84	-51%	-30%
CARDAMOM(L)	1,000	1700	700	3,885.40	555.06	-12%	189%
CHILLI	200,000	120000	218,500	137,951.50	63.14	21%	19%
GINGER	5,000	3750	12,000	7,728.75	64.41	135%	86%
TURMERIC	50,000	35000	42,500	60,884.55	143.26	-9%	78%
CORIANDER	35,000	14000	37,500	14,998.23	40.00	-9%	-26%
CUMIN	40,000	42000	27,500	33,372.75	121.36	-39%	-33%
MINT PRODUCTS	20,000	127350	16,250	154,174.00	948.76	-8%	40%
SPICE OILS &OLEORESINS	7,500	75000	6,800	80,302.45	1180.92	9%	23%

(Source: http://www.indiainfoline.com/Markets/News/Weekly-Spices-Wrap-Up-Black-Pepper-Extends-Gains-Short-Covering-And-Strong-Export-Data-supports-Chilli/3631874554)