Futures contracts of all spices, barring mentha oil and turmeric, rose today on domestic commodity exchanges.
Coriander contracts on the National Commodity and Derivatives Exchange ended up over 2% on expectation of a fall in acreage, said Brajesh Gupta, a Kota-based trader.
“Prices are likely to rise to 7,000 rupees per 100 kg this month as people are reluctant to sow coriander due to depressed prices last year,” he said.
Jeera futures hit a near one-year high of 21,520 rupees per 100 kg because of a fall in acreage under the spice this season and lower carryover stocks, said Jignesh Nayi, secretary of Unjha Commodity Association.
Stocks are seen at 200,000-300,000 bags (1 bag = 55 kg), way less than the desirable 500,000 bags.
Futures contracts of turmeric hit a two-week low of 6,530 rupees a 100 kg because of an expected rise in production in 2018-19 (Jul-Jun).
This season, crop is seen up 20% from last year as some farmers dumped other non-lucrative crops such as maize in Erode and sugar in Maharashtra, and switched back to turmeric, which led to a further rise in acreage of the yellow spice, said Vishal Thakkar, a Mumbai-based exporter.
On the Multi Commodity Exchange of India, mentha oil futures hit a two-week low of 1,731.30 rupees per kg due to subdued trade ahead of Diwali holidays starting Wednesday. Spot markets in Uttar Pradesh will remain closed from Wednesday and trade will resume from next Monday.
“Profit booking at higher levels brought some dips for mentha oil while overall sentiment is likely to recover ahead of the winter season demand,” Religare Commodities said in a report.
Cardamom contracts ended nearly 1% higher as investors covered short positions after prices hit a two-week low of 1,375.90 rupees per kg on Friday.
“Arrivals have almost halved at auctions from last week as re-pooling has lessened and market is now realizing the shortage in production,” said P.C. Punnose, general manager of The Kerala Cardamom Processing & Marketing Co.