Market Report

Market Report - December 2024

The global spice market is currently facing supply constraints and price fluctuations due to unpredictable weather and strong demand. Black pepper prices in Indonesia rose to USD 7000/kg after Vietnam's increase, with tight availability expected until the next harvest. Vietnam’s production struggles with extreme weather, causing record-low inventory levels and a 30% price hike for light berries. Sri Lanka’s interim pepper crop is delayed by cyclone impact, keeping prices high at USD 9500/MT due to strong demand. India's turmeric crop looks promising, with prices stable between USD 1750-1800/MT, though a decline is expected as arrivals increase. Indonesia has minimal turmeric availability post-harvest, and last season’s low rates may affect future production. Indian ginger production is better than last season, with increased crop size and strong demand from the food and beverage industry, making January the ideal time for purchasing extraction-grade ginger. Cardamom production in India is down 60%, with farmers holding stocks and pushing prices up to USD 40/kg. Overall, Indonesia and Vietnam face tightening supplies, while India sees steady demand for turmeric and ginger. Cardamom and black pepper prices continue to rise due to shortages, while turmeric may stabilize soon. Ginger remains in high demand, and market volatility is expected to persist across all spices.

BLACK PEPPER

Indonesia:

• Harvest Season: July – September,
• Availability of material is less as the season is over.
• Demand in both domestic and international markets is subdued due to persistently high prices.  Chinese processors are covering at any prices aggressively; whatever stocks are left out.
• Pricing: Due to Vietnam prices hike of approx. 6% last week, Indonesian prices also moved up, from USD 6500 to USD 7000 /kg levels.
• Future Expectation: Expectation is an upward trend until next harvesting season.

Vietnam:

• Harvest Season: December – February
• Unpredictable weather, including irregular rainfall and extreme temperatures, has impacted crop growth.
• Demand Trend: In November, due to concerns that pepper prices might continue to decline, many agents and export companies sold off a large portion of their inventory to generate cash flow for coffee trading.
• The 2024 harvest is expected to see a decrease in production; the inventory is projected to be at its lowest in the past 6-8 years. Currently, the inventory continues to decline sharply, making the available pepper supply in the market scarce.
• Pricing: Prices for light berries have increased by approximately 30% compared to November, while bold pepper prices have remained stable.

Sri Lanka:

• Harvest Season: April- June.
• Interim pepper crop is delayed, Arrivals from the minor season have started but remain limited due to the cyclone's impact. Industry is waiting for the arrivals to improve and prices to stabilise, to start procurement for this season.
• Demand Trend: Prices are very high due to supply shortage. Not expecting a favourable position this year, due to many buyers waiting for this material, and high prices prevailing for bold berries
• Pricing: The indicating price is USD 9500 per MT for 9% Piperine, which is not at all feasible cost wise.

TURMERIC

India:

• Harvest Season: February – April.
• Market Analysis: Upcoming Indian Turmeric crop is reported good as weather conditions are favourable in growing areas. Current arrivals are mostly from carry-forward stock, reducing market pressure
• Demand Trend: Domestic demand is strong, while export demand remains steady.
• Next turmeric crop in Vietnam is reported short due to erratic weather conditions.
• Pricing: Current offers are in the range of USD 1750 to 1800 per MT. Prices are at similar levels at Indonesia also
• Price expects to decline in the upcoming season as the crop is good.

Indonesia:

• Harvest season: July – September
• Turmeric availability is minimal as the harvest season concluded earlier.
• Local demand for fresh turmeric reduced dry material availability. Weather conditions are stable.
• Pricing: Prices remained stable in November. Next season’s production may decrease due to lower prices last season.

GINGER

India:

• Harvest Season: January - March
• Market Analysis: Indian ginger crop is better compared to last season. The crop size has increased due to the increased consumption.
• Demand Trend: Demand has increased due to the high consumption in food and beverage industry.
• Pricing:  The Best time to buy extraction grade ginger is from January onwards.

 CARDAMOM

• Harvest Season: August - November
• Market Analysis: Crop is delayed this year, and is almost 60% short. The arrivals to the government auction centre are very less.
• Demand trend: Farmers are holding onto limited stocks available with them, currently leading to poor arrivals in the market. The prices for cardamom are increasing day by day.

Pricing: Prices are moving up almost every day. Raw cardamom prices are close to 40/kg (usual good prices are USD 10-15/kg) currently.