India jeera gains; pepper, turmeric fall

Aug 2 (Reuters) - Jeera, or cumin seed, futures rose on Thursday due to less rains in Gujarat and as farmers reduced supplies to the domestic market ahead of the festive season.

* Gujarat, the country's top jeera producer, has received scanty rain so far, data with the India Meteorological Department shows.

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

* At 0912 GMT, the September jeera contract on the National Commodity and Derivatives Exchange (NCDEX) was up 0.48 p e rcent at 16,330 rupees per 100 kg.

* "Monsoon plays a crucial role in the movement of farm commodities. As of now the deficit monsoon is supporting prices in spices and prices are likely to remain firm," said Aurobinda Prasad, head of research at Karvy Comtrade in Hyderabad.

* Most of the spot markets are shut on Thursday due to Rakhshabandhan, a local festival.

* In April, cumin exports rose 6 percent from a year ago to 2,500 tonnes.

PEPPER

Pepper futures fell more than a percent as high-priced Indian produce failed to attract buyers in the global market though thin supplies and dwindling stocks restricted the downside.

* The most-active September contract on the NCDEX fell 0.74 percent to 43,455 rupees per 100 kg.

* "Indian produce is very costly in the global market and this is hurting export demand," said Faiyaz Hudani, a senior analyst at Kotak Commodities.

* Hudani expects more correction in the short term but every dip should be seen as an opportunity because of an overall firm trend in the long run.

* Scanty rain in Kerala and Karnataka, the leading pepper producing states, could hit yields, analysts said.

* In April, pepper exports fell 47 percent from a year earlier to 1,200 tonnes.

TURMERIC

Turmeric futures fell on profit-taking after the spice reported sharp gains in July, but expectations of a decline in the area under cultivation and lower rains in the main growing regions were seen supporting prices at lower levels.

* The September turmeric contract on the NCDEX was down 1.56 percent at 5,795 rupees per 100 kg. It rose more than 41 percent in July.

* Analysts do not see any sharp fall in prices because of lower sowing area and poor rains.

* "Weakness is expected to continue on extended profit-taking. It may fall to 5,400 rupees in a day or two," said Hudani.

* Turmeric is planted between June and August and takes about nine months to harvest. (Reporting by Meenakshi Sharma; Editing by Prateek Chatterjee)

Source: http://in.reuters.com/article/2012/08/02/markets-india-spices-idINL4E8J21VX20120802