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Embark on a spice-laden journey as 2023 witnessed an aromatic upheaval in prices, from jeera's record-breaking highs to turmeric's sizzling surge. Supply-demand imbalances, export woes, and geopolitical tensions dance together, shaping the spice market's dynamic melody.

Highlights

Spices Prices Surge: In 2023, certain spices, including jeera, fennel, chilli, black pepper, turmeric, and ginger, experienced significant price rallies, reaching record highs.

Jeera's Record High: Jeera prices peaked above ?62,000 per quintal in Unjha, Gujarat, before easing. The decline is attributed to increased production in the 2023-24 rabi season due to higher acreage and favorable weather conditions in Gujarat and Rajasthan.

Supply-Demand Imbalance: Various factors, such as low yields, changing weather patterns, monsoon delays, farmer shifts to other crops, and pest attacks, contributed to a supply-demand imbalance, driving up spice prices.

Exchange-Traded Spice Trends: Jeera prices on NCDEX hit an all-time high but later flattened. Turmeric prices surged over 70% on NCDEX in 2023, reaching a record high of ?16,720 per 100 kg in August.

Export Impact on Jeera: Jeera prices are affected by a 31% decrease in exports in the first half of FY 2023-24, making Indian jeera less competitive compared to cumin from Syria and Turkey.

Turmeric Price Surge: Turmeric prices increased over 70% on NCDEX in 2023 due to delayed sowing, erratic monsoon, and concerns over yield. Lower acreage in major turmeric-growing states further contributed to the price rise

Coriander Market Dynamics: Coriander prices rebounded after yearly losses in 2023, driven by strong export demand and concerns over lower acreage in the rabi season.

Impact of Geopolitical Tensions: Ongoing tensions in the Red Sea are anticipated to impact the spices market, potentially causing supply chain disruptions and increased costs.

Expectations for 2024: The market outlook for spices in 2024 is influenced by the upcoming harvest season, climatic conditions, and both domestic and export demand for spices.

Significant Acreage Changes: Acreage changes in key spice-growing states, such as the substantial increase in jeera sowing in Gujarat and Rajasthan, and the lower acreage for turmeric and coriander, are crucial factors affecting market dynamics.

Export Performance: Export figures indicate a substantial increase in coriander exports and stable turmeric exports during specific periods, impacting overall market dynamics.

Weather Sensitivity: The volatility in spice prices is attributed to the weather sensitivity of spice crops, emphasizing the importance of optimal climatic conditions for their cultivation.

Spices Harvest Season Impact: The imminent harvest season for spices such as jeera, coriander, turmeric, garlic, and ginger is expected to bring fluctuations in prices, influenced by climatic conditions and market demand.

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