Red chillies market in Guntur witnessed highly bearish sentiment on Monday. Huge crop arrivals in the market has pressurised the market sentiments. Fresh arrivals are expected to gain further momentum during the later half of the month and consequently adding to the bearishness. 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. Chilli prices are likely to remain bearish in near future.  

Black pepper markets remained bearish on Monday. It was quoted lower in Kochi amidst arrivals as well as offtake of 45 Mt. According to 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 steadiness during Monday’s trade. It was quoted unchanged in Unjha amidst 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.   

NCDEX-Jan

Turmeric markets remained stable. Prices quoted unchanged in Erode amidst steady arrivals as well as offtake. Despite higher arrivals in Nizamabad, prices also remained steady. Traders reported weak demand at present. Fresh crop arrivals are coming in the markets with mixed quality, wherein the inferior ones with higher moisture contents are fetching lower prices. Fresh crop arrivals are expected to get momentum 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 for the season.