Prices of some of India’s key spices have plummeted in recent months, affected by the coronavirus crisis. The lack of buying interest from China, a major buyer of Indian spices, due to disruptions in Chinese ports and reduced consumer spending amid the virus outbreak, had an easing effect on prices at the beginning of the year. More recently, prices have been under further pressure from a lack of export demand amid India’s complete lockdown.
On the NCDEX, trading still continues, albeit at shortened trading hours, and prices of turmeric and coriander have fallen 12% and 13% respectively since the beginning of January. Mintec prices for Indian cumin and chilli had fallen 12% and 17% respectively between January and March, when most of the local spice markets were shut as part of the lockdown measures.
The scarcity of certain spice supplies from India is expected to drive prices higher in export markets. Indeed, the Mintec price of Indian cumin delivered to the US has already surged by 34% m-o-m.
