* India's monsoon rains will not be enough to save the country from its first drought in three years, the weather office said on Thursday as it forecast that the El Nino weather pattern should reduce rains again in the second half of the June to September season.
* At 0934 GMT, the September turmeric contract on the National Commodity and Derivatives Exchange (NCDEX) was up 4 percent at 6,106 rupees per 100 kg.
* "Scanty rains in Tamil Nadu are hampering the growth of the crop. If rains do not improve then certainly production will fall," said C.P. Krishnan, director at Geojit Comtrade.
* Turmeric is planted between June and August and takes about nine months to harvest.
* Krishnan expects the September contract to test resistance at around 6,900 rupees in the short term.
* In the Nizamabad spot market in Andhra Pradesh, turmeric gained 9.5 rupees to 5,287.5 rupees per 100 kg.
JEERA
Jeera, or cumin seed, futures were up on scanty rains in Gujarat, while lesser supplies from other producers in the global market boosted overseas sales from India.
* A slowdown in domestic supplies ahead of the festive season also aided buying.
* "Supplies from other leading origins such as Syria and Turkey are very less. Buying interest is very strong and prices are expected to stay firm," said Krishnan.
* 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.
* The September jeera contract on the NCDEX was up 3.22 percent at 16,810 rupees per 100 kg.
* At Unjha, a key market in Gujarat, jeera rose 136 rupees to 16,286 rupees per 100 kg.
* In April, cumin exports rose 6 percent from a year ago to 2,500 tonnes.
PEPPER
Pepper futures rose as concern over output due to scant rains mounted and on a squeeze in daily supplies and lower stocks.
* Analysts and traders expect pepper output in Karnataka to take a hit because of less rains.
* The most-active September contract on the NCDEX rose 1.03 percent to 44,025 rupees per 100 kg.
* Prices are expected to move up on lower stocks in the domestic markets as well as buying ahead of the festive season, Angel Commodities said in a research note on Friday.
* Scanty rain in Kerala and Karnataka, the leading pepper producing states, could hit yields, analysts said.
* In Kochi, a key market in Kerala, spot pepper fell 80 rupees to 42,630 rupees on sluggish exports.
* In April, pepper exports fell 47 percent from a year earlier to 1,200 tonnes. (Reporting by Meenakshi Sharma; Editing by Prateek Chatterjee)
Source: http://in.reuters.com/article/2012/08/03/markets-india-spices-idINL4E8J32XA20120803
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