Asian condiments: Pepper, coriander, chilli prices up; ginger dropping

Global demand has been weak so far this year, as buyers expected lower prices in the short-term, thus delaying buying decisions. Low global stocks have limited any sharp price declines, according to commodities analyst Mintec.

Coriander prices, meanwhile, have also declined, from the peak reached in mid-2015 due to good availability as arrivals have increased over the past few months. Demand for high-quality produce has been normal, thus supporting steady prices. In addition, higher coriander output for the 2015/16 season in India has also contributed to the decline in prices, with production forecast at 500,000 tonnes, an increase on last year.

Prices for Indian chilli have risen significantly, once again up on 2015, due to reduced production volumes in India, combined with increased demand from overseas markets, mostly from China. 

While production for Indian chilli was expected to decline, which was the case, higher prices over the last few months have prompted farmers to increase the plantings for the 2016/17 crop, which is due to begin in July.

Indian ginger prices have declined significantly over the last year due to the arrival of a new crop, combined with higher ginger output for the 2015/16 season. Although Indian ginger production figures for the 2015/16 season have not yet been published, production is forecast to increase, following higher prices over the last two seasons, which prompted farmers to set more area area aside for the crop. 

While production is forecast to rise, a decline in yield has been seen due to unfavourable weather conditions throughout the monsoon season.