According to Mintec, the commodities analyst, these prices will remain firm due to lower production over the past year. Acreage for the 2016-17 crop is expected to increase 30% year on year as a result of the high prices seen in 2015-16. The main crop will be harvested in January-February next year.
Ginger prices have fallen this year, due to a sharp rise in production in southern India. Large revenues from ginger cultivation seen over the past few years have prompted farmers to increase the acreage planted for ginger. In addition, improved farming techniques have also led to higher ginger production this year. Ginger production for India in 2015 is estimated at 800,000 tonnes.
Coriander prices are down year on year due to an increase in production and the high quality of this year’s crop.
Low prices may negatively impact the size of next year’s crop, though prices have risen recently, driven by concerns over a drought affecting key growing regions in India.
Pepper prices have weakened due to subdued demand in traditional pepper buying markets, such as the EU and the US, over the summer vacation period.
New arrivals from Indonesia and Malaysia also added downward pressure to prices, despite expectations that production in these countries will decline year on year. Production volumes in Vietnam are expected to improve later this year.