India turmeric gains on likely drop in acreage; jeera slips.

Turmeric futures in India jumped more than 2 percent in afternoon trade on Wednesday as traders fretted about likely lower sowing in the major cultivating states after a sharp fall in prices.

* Turmeric acreage in India, the world's biggest producer and exporter of the yellow spice, is likely to fall 30 percent this season, reducing exports in 2013/14 even though total overseas sales are still expected to be above average.

* A slow start to the June-September monsoon rains could push back turmeric sowing, pushing up prices. It is planted between June and August and takes about nine months to harvest.

* At 0843 GMT, the July contract on the National Commodity and Derivatives Exchange was up 1.33 percent at 4,256 rupees per 100 kg.

* "Farmers are disappointed with the returns they are getting from turmeric. It is long-duration crop but returns have dropped significantly due to a sharp fall in prices," said Suresh Chowdhary, a trader from Nizamabad, a key market in Andhra Pradesh.

* Turmeric prices at the Nizamabad market have dropped around 30 percent since the beginning of the year.

JEERA

Indian jeera, or cumin seed, futures fell tracking lacklustre demand in the spot market though a fall in domestic supplies restricted the downside.

* Slow progress of the monsoon in Gujarat state, the leading producer, could support prices at lower levels, analysts said.

Jeera is a winter crop, planting for which starts from October, and farmers depend on the monsoon to moisten the land for sowing.

* "A correction is seen in prices because spot demand has come down. The July contract can take support at 13,600 rupees," said Chowda Reddy, a senior analyst at JRG Wealth Management.

* The July jeera contract on the NCDEX fell 0.83 percent to 13,725 rupees per 100 kg.

* At Unjha,a key market in Gujarat, spot jeera fell 42 rupees to 13,958 rupees.

* India's monsoon rains are still expected to be average in 2012, the weather office said on Friday, allaying concerns over farm output triggered by sparse rainfall in the last few weeks.

PEPPER

Pepper futures slipped as overseas sales remained subdued on higher prices and fresh supplies from Brazil and Indonesia in the global market.

* The most-active July contract on the NCDEX was down 0.38 percent at 41,080 rupees per 100 kg.

* Exports have been poor because Indian-origin pepper is being offered at a premium compared to other suppliers.

* "Brazil and Indonesia are offering at lower prices in the global market. Overseas demand is very poor but spice companies and manufacturers are buying in the local market," said Jojan Malayil, CEO of Bafna Enterprises.

* In Kochi, an important market in Kerala, spot pepper rose 61.5 rupees to 40,385 rupees.

* Industry officials estimate local pepper output in 2012 at about 43,000-45,000 tonnes, as against 49,000 tonnes last year.

Source : in.reuters.com