News Capsule: Spice Markets Show Divergent Trend: Chilli Supply Tight, Turmeric Soft
27-Feb-2026 11:01 AM
News Capsule: Spice Markets Show Divergent Trend: Chilli Supply Tight, Turmeric Soft
★ India’s major spice markets are witnessing mixed trends in the 2025-26 season. According to crop assessments presented at the International Spice Conference (ISC 2026), a sharp decline in chilli production, improving turmeric supplies, and changing global dynamics are shaping market sentiment.
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Chilli
★ India, the world’s largest chilli producer, may see production decline by 35–40 percent this year. Lower acreage and weather variability in Andhra Pradesh, Telangana, and Karnataka have resulted in arrivals remaining below expectations.
★ Although opening stocks are estimated to be 8–10 percent higher than last year, effective supply could still fall by nearly 30 percent. Weak arrivals since January have supported chilli prices, while export demand remains steady, with China emerging as a key buyer.
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Turmeric
★ The turmeric market is entering a supply-positive phase after last year’s strong rally. Production in 2026 is expected to rise by around 15 percent, mainly due to nearly 20 percent expansion in acreage. However, excess rainfall has affected yields in some regions.
★ Improved production prospects have led to a 16 percent decline in prices since mid-2024. Despite this correction, stocks are not yet excessive due to higher exports, keeping the market prone to volatility.
★ Market participants expect firm trends in chilli and a stable-to-soft tone in turmeric in the coming months.
Important Disclaimer:
This report is for informational purposes only I-Grain India does not take any responsibility for profits or losses and does not promote any specific market movement (bullish or bearish). *Please make decisions based on your own judgment and understanding.