Dear Client,
Please find below the latest market updates for the Indian Spice sector as of
18 May 2026.
The market witnessed a mixed trend during the week where active buyer interest drove up prices for nutmeg and saffron. Conversely, increased supplies and a lack of buying support led to downward pressure and price declines for large cardamom, mace, turmeric, cumin, and coriander.
Saffron Prices Surge as Geopolitical Conflict Halts Iranian Supplies 🌟
Ongoing geopolitical tensions and maritime blockades in major shipping routes have completely halted the global supply of Iranian saffron. This severe import disruption has triggered a bullish trend, driving up prices for both Iranian and Kashmiri saffron varieties. Market sentiment is expected to remain highly strong as long as import channels remain blocked.
Rising Temperatures and Market Holidays Keep Chilli Soft 🌶️
Intense summer heat has begun affecting physical sales of red chilli, leading to a quiet and soft market tone. Additionally, trading at Guntur has ceased due to summer holidays, with normal operations expected to resume only by mid-June. Spot market sentiment is expected to remain sluggish in the immediate term.
Lack of Buying Support Drags Turmeric Prices Down 💛
The turmeric market registered a bearish trend this week due to a lack of buying support from major consumer industries and stockists. Spot prices of Erode bulbs and other varieties softened under the weight of slow physical demand. Buyers are currently adopting a wait-and-watch approach, expecting prices to slide further.
Bumper Production and Dull Exports Keep Cumin Bearish 📉
A bumper cumin crop in Gujarat and Rajasthan has led to heavy daily arrivals at key trading centers like the Unjha mandi, creating a massive supply surplus. This supply pressure is compounded by weak export demand, particularly from China, which has significantly cut back imports due to its own good domestic crop. Experts anticipate range-bound or weak prices over the next few weeks unless Chinese or Middle Eastern buyers re-enter the market in June.
Small Cardamom Steady but Free from Bullish Momentum 🟢
Despite a previous decline in prices, physical demand for small cardamom remains slow and sluggish. Auction arrivals have been relatively high, and while light buying support has kept average prices stable, it is not strong enough to trigger a rally. The market outlook shows no immediate prospects of a significant upward move.
Large Cardamom Sluggish but Long-Term Supply Concerns Loom 🟤
Spot prices of large cardamom softened due to cheaper arrivals from Assam and profit-booking by regional traders. However, the downside remains protected as imports from Nepal are limited, and severe crop damage has been reported across Sikkim, Bhutan, and Nepal. While immediate spot market sentiment is dull, the medium-to-long term outlook remains firm due to these production losses.
Tight Supplies Keep Black Pepper Firm and Resilient 🖤
The black pepper market continues to trade on a firm note, supported by tight domestic supplies and low stock availability. Although the physical off-take is currently slow, limited daily arrivals are preventing any price correction. The commodity is expected to maintain its strong sentiment in the physical markets over the coming days.
Cloves Defy Summer Dullness Supported by Global Shortages 🤎
Clove prices remained steady during the week despite a summer-induced slowdown in consumer demand. The market is well-supported by reports of a lower crop yield in Madagascar and a weaker Indian Rupee against the US Dollar, which makes imports costlier. No major price correction is anticipated in the spot market in the near term.
Dry Ginger Stabilizes as Buying Momentum Slows Down 🪵
Following a recent spell of strong prices, dry ginger trade became quiet with flat prices as active stockist demand took a breather. Trading activity at major hubs like Kochi remained limited due to weekly holidays. The spot market is projected to trade in a sluggish to steady range in the short term.
Mace Prices Soften Under Pressure of New Crop Arrivals 🍂
The mace market experienced a bearish phase as increased arrivals of the new crop put pressure on existing stock prices. The sudden supply influx outpaced the current quiet consumer demand, leading to a softer undertone. Prices are expected to stabilize once the peak arrival pressure subsides.
Nutmeg Rises on Active Stockist Buying 🌰
The nutmeg market recorded a bullish trend as the arrival of fresh stocks triggered active buying from stockists and industrial users. This buying support successfully pushed up spot prices, making it one of the few gainers in the spice segment. The market outlook remains positive with expectations of sustained buying.
Coriander Slumps Amid Persistent Silence in Demand 🌿
Coriander prices registered a soft trend this week as buyers and masala manufacturers maintained a prolonged silence. Spot transactions for badami and other premium varieties slowed down significantly, forcing sellers to ease quotes. The market is waiting for a revival in domestic industrial demand to arrest the decline.
🔑 Key Takeaways
for Buyers
- Gradual Cumin Liquidation: Instead of aggressive selling, stockists should liquidate cumin stocks slowly to avoid losses as the market deals with heavy arrivals and weak export demand.
- Secure Saffron Requirements: Procure saffron early to hedge against high prices, as the geopolitical blockade of Iranian shipping lanes has completely halted imports.
- Hold Large Cardamom: Maintain long positions in large cardamom despite current spot dullness, as significant crop damage in Nepal, Bhutan, and Sikkim signals a future supply squeeze.
- Accumulate Black Pepper: Buy black pepper on minor dips as tight domestic availability and limited arrivals are highly likely to keep spot market sentiment strong.
- Watch Guntur Chilli Reopening: Defer heavy commitments in red chilli until the Guntur market reopens in mid-June to get a clearer picture of crop availability and summer demand.