Market Report – May 2020

We are seeing the reopening of many of the economies across the world.  Recovery plans revolve around tackling challenges like disrupted supply chain, travel restrictions, remote working, closure of trading markets, etc. As we navigate through these uncertainties, our ultimate aim is to respond and thrive in the post pandemic world.

In our Market Report this month, along with few of our regular trending products, we have given special focus to IMMUNITY improving products. We all know that prevention is better than cure. Enhancing the body’s natural defence system plays an important role in maintaining optimum health during these times.

Immunity Ingredients

Turmeric

Turmeric is a natural way to help bolster the immune system. Curcumin in Turmeric is known to suppress various inflammatory molecules which are responsible for the causes of damage by viruses.

Turmeric production for 2020-21 is nearly 20% lower due to supply crunches from major markets like Indonesia, Vietnam, Ethiopia, Nigeria etc. due to the Covid crisis. Additionally, the major turmeric raw material markets in India (Andhra, Telangana, Maharashtra and Tamil Nadu) fell within containment red zones and were closed for a while.  India, being the largest producer, consumer and exporter of the golden spice can have a direct impact on global turmeric price movements.

Ginger

The anti-inflammatory and antioxidant properties of Ginger are known to improve the disease response system of the  body.   Season for Ginger is over now; yield from raw material available now is low.  Scarcity in material  is expected to result in an increase in price.

Black Pepper

Black pepper is known to contain not only anti-inflammatory, antioxidant, anti-bacterial and fever reducing actions but immune system enhancing properties as well. Prices have been stable in the past month. Good crop in Vietnam and carry forward stock combined with dip in demand could lead to a price drop in the second half of 2020.

Ashwagandha

Known to boost the immunity system and to freshen up the mind, Ashwagandha is an ingredient that also improves the overall strength of the body. The product has great shelf-life and is taken as a herb supplement world over. Graded raw material is now available in sufficient volumes after the season that ended in January; although price is seeing a fluctuation due to increase in demand. BHOOMI offers Ashwagandha in powder form as well as dried raw material (root).

 

Moringa

Moringa oleifera is best known as a medicinal powerhouse of natural nutrition. Moringa leaves are usually dried, ground and sold as powder or as supplements.  Moringa seed oil is also a popular ingredient.

*It’s quite difficult to define or show scientific proof on the effectiveness of traditional medicines as these ingredients help in the overall improvement of health and provide wholesome benefits to the body, thereby reducing effects of infection. Though herbal medicine has a lot of takeaways it’s highly recommended that children, pregnant women, people with severe chronic diseases and other ailments should consult a doctor before staring any medications of their own.  

Other trending products

Lemongrass Oil

With lockdown in place and limited distillation activity in the growing areas, there is a disparity between demand and supply. With limited import from China, this shortage is expected to go up in the coming two to three months. This will lead to an increase in price in the coming months.

Palmarosa Oil

Due to strict curfew in place in the growing areas, distillation is almost at a standstill. This is leading to an increase in rate.  Available stocks are seeing a good demand .

 

 

Cardamom

Markets are stable since the outbreak of the pandemic in India. Main reason for dip in demand is due to drop in production of confectionery & snacks in India. Once production restarts at full capacity, demand in expected to rise. Though a good monsoon season is predicted, prices are expected to hover in the current levels or a slight fluctuation upwards depending on demand vs. supply in the coming months.

 

 

Capsicum

Major Indian capsicum markets in Andhra Pradesh and Telangana were closed for the last 2 months and no trading happened at the market level.  In addition to the supply chain hurdles due to Covid-19 lockdown , the level of Capsaicinoids were below par this year.  On top of that, the loss of harvested material at the farm gates and at Guntur, the largest chilli market, having fallen under the red zone has pushed the prices on the higher side.

 

 

Anantmool

“Anantmool” which means “endless root” has got the name because the root of the plant grows deep underground.  It is very effective in managing gastritis  and also applied for treatment of reproductive disorders.  Sufficient quantities in our stock at present.

 

 

Davana Oil

There is instability in the market, farmers are expecting the prices to move up after the lockdown is lifted in India. Stocks on hold by farmers are being offered at very high prices. As reported earlier, this year the davanone content is lower than the industry standards. Once the lockdown in lifted, a hike in price is expected.

 

 

Mint Oils

Harvest of Mentha Arvensis is in progress. However, restrictions due to national lockdown has both delayed the start of the harvesting and slackened the pace.  As reported earlier, area of cultivation of Piperita had seen a sharp decline this year.  Supply is limited and therefore, prices are already showing an upward trend. Further increase in price is anticipated owing to higher demands.

 

 

Nutmeg

With the start of the pre-monsoon showers, good arrivals are reported for the immature nuts ideal for distillation of Nutmeg oil.  A good monsoon season is also predicted in the coming months in Kerala,  which will result in a good yield of nutmeg chips which is used for Nutmeg oleoresin.

 

 

Paprika

Indian Paprika Markets are expected to re-open after the lockdown. Extraction grade high colour paprika is being traded at almost 50% higher than last year prices. This year, the crop coverage of conventional paprika has come down to 35% and remaining 65% had been replaced with hybrid seeds. IPM material is not at all available in the market and no oleoresin companies are actively buying right now from villages due to higher prices and inferior quality.

 

 

Neem

Azadirachta indica, commonly known as Neem has long been used in medicine, especially in skin and cosmetic care products.  May is the season start for Neem, hence leaves are available in plenty.  Seed collection for Neem oil production will start in June.

 

 

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