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The Vietnamese pepper MBP maintained its upward direction in June, up by 10% m-o-m and 59% yo-y
at USD 4,095/MT, as the market continues to be squeezed by supply tightness in Vietnam, the
largest pepper producing country. The additional supplies from new crop harvests in Indonesia and
Brazil are expected to alleviate some of the price pressure.
The minimum export price of Madagascan vanilla remained at USD 250/kg in June. This is 29%
below the last year, as the market continues to be weighed down by ample supplies in Madagascar.
For the season ahead, earlier hopes of an exceptional 2021 harvest have been hampered by dry
weather conditions since the start of the year, causing some vines to dry and beans to fall off the
vines.
Turmeric futures on the NCDEX India fell by another 6% in June compared to May but the
benchmark is up 42% y-o-y, at USD 105/100kg. Anticipations of a lower 2021 Indian harvest
supported the market. However, high prices are expected to stimulate higher plantings for the
upcoming season in Maharashtra, Telangana and Andhra Pradesh. Indian turmeric exports are
projected to grow substantially in 2020/21, due to strong demand from health and wellbeing sectors.
The price of Indian cumin declined by 2% m-o-m in June to USD 166/100kg. On an annual basis,
the benchmark fell by 3% as the market continues to be weighed down by pandemic-related
uncertainty and the persistent shipping issues hindering export demand. According to the FISS
(Federation of Indian Spice Stakeholders), the 2021 Indian cumin output is expected to decline by
10.5% y-o-y to 535,000 tonnes, following a reduction in yields and a decrease in the production area.