Dear Client,
Please find below the latest market intelligence for the Indian Spice sector as of
27 February 2026.
Red chili prices are witnessing a bullish trend due to a significant reduction in arrivals from production centers, while turmeric and nigella seeds are facing a bearish sentiment on account of weakening market demand.
🌶️ Red Chilli Ignites on Supply Crunch
The red chilli market is exhibiting strong bullish momentum as arrivals from major production mandis have tightened significantly. Increased buying interest from stockists is further fueling the upward price movement. The short-term outlook remains strong as supply continues to lag behind current market requirements.
📉 Turmeric Sentiment Remains Subdued
Turmeric prices have softened as demand from stockists and bulk buyers remains weak across major trading hubs. Despite a slight increase in arrivals in markets like Erode, the lack of active buying interest is keeping the market under pressure. The outlook for the coming days suggests a bearish trend with prices expected to remain suppressed.
🖤 Black Pepper Supply Remains Tight
Arrivals of the new black pepper crop from Kerala and Karnataka are currently negligible as farmers are holding back stocks in hopes of better valuations. With imports from Brazil halted and domestic production estimated to be lower this year, the underlying sentiment remains firm. Limited price fluctuations are expected in the near term due to thin availability in the spot market.
⚖️ Cumin: Risky Trading at High Levels
While the futures market has shown recent strength, physical market experts warn that trading at current high levels is increasingly risky. Sowing in Rajasthan and Gujarat has been excellent due to favorable weather, leading to expectations of a bumper crop. Profit-booking is highly recommended as weak export demand and significant carryover stocks may limit further upside.
🌿 Coriander Strength Before Harvest
The coriander market is showing signs of strength due to a shortage of quality old stocks just before the new harvest. Although sowing area has increased by approximately 15-16% in Rajasthan and Madhya Pradesh, the delay in new crop arrivals is keeping current sentiment bullish. Experts anticipate firm prices until the new crop hits the market in late March or early April.
🌰 Large Cardamom Finds a Floor
After a period of price correction, the large cardamom market has entered a phase of sluggishness with slow turnover. Auction prices have stabilized, indicating that while demand is currently low, there is little fear of a further significant decline. The market is expected to maintain a steady to soft tone in the immediate future.
🍂 Nutmeg and Fenugreek Face Sluggish Demand
Both nutmeg and fenugreek are experiencing a slowdown in market activity as export and domestic demand remain lackluster. For nutmeg, the lack of buyer interest is keeping the sentiment weak, while fenugreek supply remains stable with no immediate signs of a price recovery. Traders are advised to adopt a cautious approach for these commodities.
🔑 Key Takeaways
for Buyers
- Buy/Hold: Black Pepper positions should be held as domestic supply remains tight and imports are restricted.
- Caution: Cumin traders should exercise extreme caution and consider profit-booking before the bumper new crop arrives.
- Watch: Red Chilli arrivals are the key metric; continued low supply will sustain the current bullish trend.
- Strategic: Coriander markets offer short-term opportunities due to old stock shortages despite a larger upcoming crop.
- Hold: Turmeric and Nutmeg are currently in a weak cycle; wait for demand to stabilize before fresh procurement.
- Watch: Large Cardamom auction results as they are currently providing a much-needed price floor for the spot market.
