India turmeric gains 4 pct on lower sowing; pepper drops

Aug 16 (Reuters) - Turmeric futures hit a 4 percent upper circuit, its highest daily permissible limit, on Thursday due to expectations of lower production after farmers slashed area under cultivation this season.

* Farmers slashed area under turmeric sowing this season after prices fell sharply since last year.

* At 1100 GMT, the September turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) was up 3.99 percent at 6,050 rupees per 100 kg.

* Trend remains bullish as fundamentals are strong due to a drop in turmeric sowing, Kotak Commodities said in a research note on Thursday.

* In Nizamabad, a key spot market in Andhra Pradesh, turmeric slipped 8 rupees to 5,449 rupees per 100 kg.

* The monsoon, which brings some 75 percent of India's annual rainfall, is 17 percent short of normal so far and threatening cereal and pulses production.

* Turmeric is planted between June and August and takes about nine months to harvest.

JEERA

Jeera, or cumin seed, futures rose as improved demand in the spot market in the festive season and fresh export enquiries supported buying. However, rains over parts of Gujarat, the top producer, restricted the upside.

* "Fresh export orders are coming for Indian origin jeera. Supply concerns from other producing regions due to lower output is favouring Indian exports," said Samir Mahendra Shah, a trader from Unjha, a key market in Gujarat.

* Jeera is a winter crop sown from October, and farmers depend on rains to moisten the land for sowing.

* The September jeera contract on the NCDEX was up 1.29 percent at 16,337.5 rupees per 100 kg.

* At Unjha, a key market in Gujarat, jeera rose 96 rupees to 16,240 rupees per 100 kg.

PEPPER

Pepper futures fell due to weak exports as higher prices for Indian produce dampened demand outweighing concerns over output and thin supplies.

* The most-active September contract on the NCDEX fell 3.10 percent to 42,260 rupees per 100 kg.

* Overseas buyers have been placing orders with other pepper producing countries such as Indonesia and Brazil due to lower offers from these countries, traders said.

* "Demand slows down at higher prices. Though fundamentals are supportive but no one is ready to buy at such higher prices," said Manikant Khona, a trader from Kochi, a key market in Kerala.

* Scanty rains in Kerala and Karnataka states, the leading pepper producers, are seen lowering yields, analysts said.

* In Kochi, spot pepper fell 367 rupees to 42,400 rupees.

* In April, pepper exports fell 47 percent from a year earlier to 1,200 tonnes. (Reporting by Meenakshi Sharma; Editing by Anand Basu)

Source: http://in.reuters.com/article/2012/08/16/markets-india-spices-idINL4E8JG23520120816