Spice prices drop amid strong production prospects

Spice prices, including cumin, coriander, turmeric, black pepper, and dry chilli, have dropped due to sufficient carryover stocks and favorable harvest forecasts. On average, spice prices fell 7.4% year-on-year in December.

Prices of several spices, including cumin (jeera), coriander (dhania), turmeric, black pepper, and dry chilli, have dropped from last year’s highs, driven by adequate carryover stocks and the expectation of a good harvest. On average, spice prices dropped by 7.4% year-on-year in December.

Cumin seed prices have notably decreased at Unjha, Gujarat, the country’s main trading hub, where the mandi price has dropped to ₹22,200 per quintal from ₹65,900 per quintal in September 2023, in anticipation of a bumper crop. Jeera futures for May 2025 expiry were priced at ₹21,775 per quintal on the NCDEX platform. The 2024-25 crop year is expected to yield 9 million bags of 25 kg each, slightly down from the 10 million bags of the previous year. Carryover stocks of around 2.5 million bags will help maintain lower prices.

Dinesh Patel, ex-chairman, Agricultural Produce Market Committee (APMC) and trader from Unjha (Gujarat) noted, “Prices are expected to decline further with a bumper harvest projected on the back of a bigger area under cultivation and conducive weather conditions.” 

In Guntur, Andhra Pradesh, the largest chilli market in India, prices fell to ₹12,500 per quintal due to higher production forecasts. Turmeric prices have also softened to ₹14,290 per quintal, down from ₹20,430 per quintal in May 2023.

India, the world’s largest producer and consumer of spices, is estimated to produce 11.8 million tonnes of spices, slightly less than the previous year. Key spice-producing states include Karnataka, Maharashtra, Assam, Odisha, Uttar Pradesh, West Bengal, Tamil Nadu, and Kerala. In FY24, spice exports totaled US$ 4.46 billion, with a 9% increase in volume to 1.53 million tonnes, compared to 1.4 million tonnes in the previous fiscal year.