Business Standard

The short-term outlook for spices is negative: Ian Hard

Interview with Managing editor, Public Ledger

Related News

The is faced with high demand and constrained supply. Having observed the market closely for the past several years, Ian Hard, managing editor of Public Ledger, a London-based, 250-year-old research and publication house, established in 1760, tells Dilip Kumar Jha, the of spices may not be sustainable. Edited excerpts:

How is the global scenario for spices and other agri commodities ?
The consumption of agri commodities is growing fast with the growth in global population. Even in a difficult economic scenario, the demand for spices jumped five per cent. Consumption is rising. On the supply, side across spices, production is not adequately meeting consumption. As a result, last year’s prices shot up globally to a record high. However, prices are expected to come down.

India has seen sharp price rise in turmeric and huge volatility in pepper. What is the outlook?
The turmeric market is witnessing a very big supply response from India, a major producer of the commodity. There were protest from Indian farmers due to the lower prices, which does not match the export prices. Turmeric prices have already declined drastically and there is a possibility of a further fall in 2012.

Black pepper has declined in recent weeks. There is no clear picture about the Vietnamese crop, for which we will have to wait till the beginning of April. Thus, it is not certain how long the fall would continue. But, the prices will not go up. Global demand continues to rise despite economic concerns and relatively high prices last year. Thus, the for spices continues to be negative.

Indian exporters complain that Europe’s quality norms are excessively stringent. Your opinion on this view?
European policy makers generally ensure that goods supplied to their people are of good quality. Consumer safety comes first in this region. Importers in Europe often try to ensure that efforts put in by farmers are adequately paid off, which is possible through stringent quality norms translating into higher prices. I cannot term the stringent quality consciousness excessive..

What do you think is the way out?
We can help improve the quality of the produce and help farmers get better returns. Bodies like the Spices Association in Europe are working actively with the Spices Board and other associations in India to help know the exact requirement of European consumers and adopt best farm practices.

Read more on:   
|
|
|
|

Read More

'Tax on super-rich is a small move towards growth'

Business Standard's investment editor Puneet Wadhwa speaks to Sunil Singhania, Head of Equity, Reliance Capital, on Budget 2013

Quick Links

Market News

December saw open offers worth Rs 2,712 cr

Public shareholders in listed firms received open offers worth Rs 2,712 crore in December, the second highest so far this fiscal, with all the ...

Surat diamond bourse on fast track after hiccups

Land allotted, foundation laying ceremony soon

India retains fourth position in world steel order

With the ongoing expansions, it could take the position of the US within a couple of years, as the gap between the two is only around five mt

India's soymeal export set for 26-year low as Iran buys less

India's soymeal exports are set to hit a 26-year low in the year ending March as easing of sanctions against Iran allows the key buyer to opt ...

Gauhati Stock Exchange receives Sebi nod to exit business

GSE is the ninth stock exchange to shut operations after failing to meet the trading turnover and networth requirements for stock exchanges as ...

 

Back to Top