Red chillies market in Guntur remained bearish. Fresh crop arrivals in the market are gaining momentum and consequently has pressurised the prices. Fresh crop arrivals are expected to gain further momentum during the later half of the month. Traders reported dull demand at present in the market. Chilli export from the country has increased by 44 percent to Rs. 440 crore during April-Dec 2006 owing to higher prices prevailing at that time. However, in quantity terms it has declined by 3 percent. Prices are likely to remain bearish in near future.

Black pepper markets remained stable. It was quoted unchanged in Kochi amidst arrivals as well as offtake of 56 Mt. As per a recent notification by the Spices Board of India regarding the WTO Compatible subsidy on export of pepper/pepper products, the Board has already received applications for subsidy on pepper exports for a quantity of 20000 MT which is the upper limit upto which pepper exporters are eligible for the freight subsidy. Therefore, no more applications in this regard from the exporters will be accepted. Notably, India has already exported pepper worth Rs. 203 crore during April-December 2006 achieving the target of set quantity as well.

Jeera markets maintained its previous position during Tuesday’s trade. It was quoted unchanged in Unjha amidst slightly higher arrivals and steady offtake. Fresh crop arrivals are increasing in the market and consequently pressurising the market sentiments. Fresh crop arrivals are likely to pick up further during the next couple of weeks that would eventually help to determine the actual size of the crop, estimations of which varies widely at present. Meanwhile, jeera exports have increased by 199 percent to 22000 tonnes and by 194 percent to Rs. 166 crore during Apr-December 2006. Domestic jeera prices are likely to consolidate in short-term.

Turmeric markets witnessed a firm trend. It was quoted higher in Nizamabad amidst improved demand situation, while reduced arrivals pushed up price in Erode. Fresh arrivals are coming in the markets with mixed quality, wherein the inferior ones with higher moisture contents are fetching lower prices. Fresh arrivals are expected to gain pace in the coming couple of weeks that would further pressurise the prices. Turmeric markets are likely to remain moderately bearish on a better crop harvest outlook. However, some short-term firmness is expected on improved demand.