The Hindu Business Line : Tamarind prices may go up on demand

TAMARIND prices are likely to go up further in the short-run on good domestic demand and depleting ready stocks, despite reports of a higher new crop.

Prices in the Navi Mumbai wholesale market have increased sharply to Rs 4,500 - Rs 6,000 per quintal, up by around Rs 1,000 in the last one-and-half months, according to a trader.

"Prices may go up further on reports of very low carry-over stocks for the new season, starting from January. Fresh demand from the southern states, mainly Andhra Pradesh and Tamil Nadu, is expected to resume from next month. However, stocks-on-hand with major stockists have been reducing day by day. New arrivals will start from the first week of January at a very slow pace in Hubli and Belgaum, the major centres of Karnataka," Mr Gautam Khania, a leading trader told Business Line.

"At present,stockists are selling at higher levels on reports of a better new crop. The new crop is expected to rise by about 20 per cent over the previous season," Mr Khania said.

India is the largest producer of tamarind. Major producing States are Madhya Pradesh, Maharashtra and Andhra Pradesh.

The market witnessed an overall firm tone in 2004, similar to the bullish trend in 1999.

The market entered a bearish phase in 1999 because of limited stocks imposed by Andhra Pradesh. As a result, prices crashed from Rs 4,500 to Rs 1,800 per quintal in a short time. Until 2003, the market was struggling to recover its part losses. Majority stockists had covered huge quantity, market sources said.

"They want to get out of the market as prices are on the rise. Looking at the current situation, I think they may re-enter the market around March-April 2005," Mr Khania said.

"Fresh demand from West Asia is good. India is in a good position to expand its trade as overall crop in Indonesia and Thailand is estimated to be lower. We can take advantage of it, as Indian tamarind is cheaper. Last year, some parcels of imported tamarind (for the first time) landed from Thailand and Indonesia because of price advantage but demand could not pick up because of its quality," an exporter said.

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