Prices of Indian Spices Increased Due to Low Supply

The upward price trend of Indian spices have persisted in Aug-23. Coriander, for instance, has witnessed a 38% MoM price increase reaching USD 0.4/kg in W4 Aug-23. Similarly, the wholesale price of capsicum has experienced a surge of 79% MoM, reaching USD 0.34/kg. The price of curry in India has also demonstrated an upward trend, rising by 46% MoM to USD 0.38/kg ending in Aug-23. This price escalation within spices products can be primarily attributed to a decrease in crop yield resulting from unfavorable weather conditions across various regions of India. Adverse weather patterns, including irregular rainfall and extreme temperatures, have hampered agricultural productivity, thereby impacting the supply of these essential culinary components.
The food inflation in India in Jul-23 surged, with the rate reaching 11.51%, an increase of 156% month-on-month (MoM) compared to the 4.49% reported in Jun-23. This uptick in food inflation can be attributed to various factors, including a 21.6% rise in the cost of spices during the same month. The upward price trend of Indian spices persisted in Aug-23. Coriander, for instance, has witnessed a 38% MoM price increase, reaching USD 0.4 per kilogram (kg) in W4 Aug-23. Similarly, the wholesale price of capsicum has experienced a surge of 79% MoM, reaching USD 0.34/kg. The price of curry in India has also demonstrated an upward trend, rising by 46% MoM to USD 0.38/kg ending in Aug-23. This price escalation within spice products can be primarily attributed to unfavorable weather conditions across India reducing crop yields. Adverse weather patterns, including irregular rainfall and extreme temperatures, have hampered agricultural productivity, thereby impacting the supply of these essential culinary components. The continued volatility in weather patterns remains a primary concern for the pricing of herbs and spices. If adverse weather conditions persist, there is a possibility of further supply constraints, which could place additional upward pressure on prices.