NAGPUR: If foodgrain prices are spiraling, spices are just adding to the flavour. Low output in general as well as dealers holding on to the stock or hoarding-- have resulted in prices of commonly used spices shooting through the roof. Turmeric is reported to have seen the biggest hike. Many other spices too are dearer compared to last year. This has also hit exports, say sources.
Turmeric is ruling at an all time high of Rs 130 a kg compared to around Rs 50-55 last year. The yield this year has been tremendously low fuelling the rates. "Higher price at home puts Indian traders at a disadvantage in the export market. China has overtaken India in turmeric exports," said Prakash Wadhwani, a director of Spices Board of India.
The figures posted in Spices Board website say that the overall exports have come down 6% in terms of quantity and 7% in value during April-September period compared to same period last year. The spices which have seen a decline in exports are pepper (22%), cardamom (35%), chili (23%), and garlic (31%). The prices of all except pepper have gone up in comparison to previous year. In case of turmeric, the growth in quantity has remained unchanged but there has been a 48% hike in terms of value, which indicates sharp hike in prices.
Turmeric prices had not crossed the Rs 50 mark before. However, the rates at the start of the season itself were at Rs 40 this year. In normal times, it is in the range of Rs 20-25, added Pankaj Agrawal, a spice trader from the city. A trader from Dharwar in Karnataka added that the even some of the dealers were holding on to the turmeric stock to cash in on the situation. The prices are expected to remain up until the new turmeric crop arrives in February.
Nalini Rao. a commodity analyst from Angle Broking, said the prices of turmeric are going to remain high in the coming months due to the strong demand in northern states during the winter months. At the same time the prices of pepper were contained due to rumours of excess supply coming from Indonesia.
Source : TOI