Dear Client,
Please find below the latest market intelligence for the Indian Spice sector as of
2 March 2026.
The Rajasthan government has provided major relief to coriander traders by significantly reducing Mandi tax and commission charges, a strategic move aimed at strengthening local spice trade and preventing business migration to neighboring states.
📉 Geopolitical Tensions & Rising Arrivals Weigh on Cumin
Cumin prices are facing downward pressure as the arrival of the new crop intensifies in Unjha and other major Gujarat markets. Geopolitical tensions involving Iran have sparked significant concerns regarding export demand from Dubai, leading to a cautious approach by international buyers. Despite a recorded decrease in domestic sowing, the immediate influx of new supply and sluggish export inquiries suggest a bearish sentiment in the short term.
🔥 Red Chilli Maintains Strong Momentum in Guntur
The Red Chilli market is expected to remain bullish over the coming week, driven by robust buying support from exporters. Even with daily arrivals in Guntur reaching high volumes, prices have held firm as stockists actively build positions. Concerns over lower production compared to previous cycles are further strengthening market sentiment, suggesting continued price strength.
🟡 Turmeric Market Softens Amid Sluggish Buying
Turmeric prices have entered a bearish phase as stockists and buyers show limited interest even at lower price levels. The market sentiment has been negatively impacted by heavy selling in the futures segment, partly triggered by global geopolitical uncertainties. Traders anticipate that prices will remain subdued with no immediate signs of a rally in the upcoming week.
🌿 Tax Relief Supports Coriander Trade Despite Low Demand
The coriander market has received a structural boost following the Rajasthan government’s decision to slash Mandi taxes, though spot prices remain stable. Current arrivals of the new crop are relatively low, but this has been balanced by weak buying interest from stockists. The outlook remains steady as the market waits for demand to catch up with the newly improved trading conditions.
📉 Fennel Production Expected to Drop Due to Lower Sowing
Latest industry data suggests a 4% decline in total fennel production for the current season, primarily due to a 7% reduction in nationwide sowing. Major producing regions like Gujarat have seen a significant double-digit drop in acreage, which is likely to tighten supply in the coming months. While yield improvements in Rajasthan may offer some cushion, the overall supply outlook remains supportive of firm prices.
⚫ Black Pepper Exhibits Stability with Limited Downside
Black Pepper prices are currently holding steady, showing resilience against further market slumps. While recent activity from stockists has been slow, steady arrivals in Kochi and balanced domestic demand are preventing any sharp declines. Market analysts do not foresee a bearish trend in the immediate future, maintaining a neutral to firm outlook.
🔑 Key Takeaways
for Buyers
- WATCH: Impact of the Iran-Israel conflict on export logistics and demand for Cumin and Poppy Seeds.
- BUY: Red Chilli on price dips as exporter demand and production shortfalls support a bullish trend.
- HOLD: Coriander positions as the reduction in Mandi tax in Rajasthan improves long-term trade viability.
- CAUTION: Bearish pressure on Cumin may persist as new crop arrivals continue to peak in Gujarat.
- WATCH: Fennel supply chains as the projected 4% production drop could lead to tighter availability.
- WATCH: Turmeric and Big Cardamom for signs of renewed stockist interest after the recent price softening.
