MARKET REPORT

Chili
Chilli prices across the major spot markets have shown bearish movement during October while in Warangal the market
was firm on good domestic demand.

There is an overall drop in cultivating area of up to 30% - 40% in the rain fed belts of Dharwad, Gadag and Haveri
which generally contributes around 40% of the total area under Color Chilly cultivation.

The major competition for Chilly acreage has been from Cotton. It is reported that the overall increase in Cotton
acreage in India is 0.7 million hectares from 10.3 Million hectares. The major growing areas being Maharashtra,
Andhra Pradesh and Karnataka.

There is however not much of an adverse effect on the Chilly acreage in the irrigated districts of Bellary, Raichur, and
Gulbarga.

The transplanting have drawn to a close in Andhra pradesh, and it is being estimated that there may be a slight fall in
the chilli area by around 10%, with Cotton being an attractive alternate crop. The continued good remunerative price
for cotton has vindicated the farmers in shifting to cotton.

At present, chilli plant is reported in good condition throughout India. However, if chilli growing region receive heavy
rains for next few days, there may be chance of crop damage especially in and around Guntur.

Chilli arrivals from Madhya Pradesh started to enter the markets while the color chilli crop (Karnataka) arrivals expected
in December.

Material Harvest Period

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Chili Byadgi X X X X
Chilie Teja Red X X X X

Henry Lamotte Food GmbH | Merkurstrasse 47 | 28197 Bremen/Germany | Phone +49(0)421 523947-0 | Fax +49(0)421 523947-199 | info@lamotte-food.de | www.lamotte-food.de
Pepper
Pepper future continued to rule hot on good domestic and export demand. Limited availability in the closing months of
the year would push prices up.

Demand for pepper has been on a steady growth in recent year’s .At the same time, there has not been a corresponding
rise in production. Sharp rise in prices of white pepper also affect the availability of black pepper berries in the Asian
centers, because of its conversion into white pepper at a comparatively lower cost.

Pepper output from Brazil and Indonesia is projected to be lesser in the current season while Indian production is likely to
retain at last year’s level Erratic distribution of monsoon rains are likely to keep the Indian pepper production at almost
the same level as last year.

Production in Wayanad and Idukki in Kerala is estimated to remain same or may show a small decline while the Coorg
area in Karnataka is reporting lower berry formation. Indian pepper production for the last two years has been pegged
at 50,000 tonne with the domestic demand assumed at 40,000-45,000 tonne. Production in Idukki would be same as
last year despite good rains and almost conducive climate conditions. Diseases are plaguing most of the plantations and
the farmers are not keen on taking remedial measure due to the high cost of labour.

Material Harvest Period

black Pepper Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
- India X X X X
- Sri Lanka X X X X X X
- Indonesia X X X
- Vietnam X X X X X
- Madagascar X X X
Ginger

Nigeria - New crop Nigerian ginger is getting ready for harvest. Rains in some areas are delaying harvest. Initial
arrivals are moving across the border to Chad and Ivory Coast. All indications are for a better crop. But at the same
time buying and stocking for higher price as well as slow release of cargo into market.

China - Usually Ginger crop in China is 20000 MT a year; around 50% are for export and the balance for domestic
sale. Last year crop is much reduced and is around 5000-6000 MT. People expect that the new crop which commen-
ces on November 2010 will be similar as last year. Due to this shortage, Chinese ginger price has gone up.

China has enquired Nigerian ginger for importing to cater their requirements. If China enters the Nigerian ginger
market, then the Nigerian ginger prices may increase during the start of the season .But this is uncertain. Hence, we
would be able to get an exact idea regarding the price increase only by Dec 2010 / JAN 2011.

Burma - New crop will be harvested by December. Crop is expected to be same as last year. Currently fresh ginger
is going to China. Due to the crop shortage in China and Indonesia, they enquired both Nigerian and Myanmar gin-
ger for their requirement. So there is little chances of prices going down in the event China starts active buying.

Ethiopia - New crop is ready for offer. Normal season is February. This year we have early offers perhaps due to
better prevailing prices.

India - The Indian crop is good, but we are not in a position to say how much of fresh ginger will be converted into dry
ginger.

The season for Rajkumari Ginger commences during the months of January/ February.
There is no increase in areas since farmers are switching to cardamom due to the high prices of Cardamom.
The prices may come down during this period due to increased arrivals.

Material Harvest Period

Ginger dried Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
- Rajakumary X X
- Shimoga X X X
- Nigerian X X
- Chinese X X X
- Ethiopia X X X
- Burma X X X
Cardamom

Peak harvest season had pressurized cardamom prices across the major spot markets. Prices have declined
at cardamom markets.

Kerala has received good rain during current season of cardamom production. The crop production in the
current season is expected to be around 11000 mt. In Kerala and Tamilnadu 4th picking has commenced.
Harvesting is in full swing and weather conditions remain ideal. Farmers are holding the crop as prices are
declining in spot markets.

We expect prices will move higher in the coming days as the farmers are not ready to sell at lower levels
and are holding for higher price expectations.

Material Harvest Period

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cardamom X X X X X
Black Cardamom X X X X
Turmeric

Prices of turmeric may increase due to festival demand and lower ending stocks.

Turmeric prices across major spot markets have shown a positive movement on account of festival demand.
Turmeric growing areas had received sufficient rains, which is supporting plant growth and it will lead to
higher output in 2011.

The overall price trend is expected to remain bullish in turmeric.

Material Harvest Period

Turmeric Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Allepy X X X X X
Barsi Kocha X X X X X X
-Vietnam X X X X
-Indonesia X X X X X
-Myanmar X X X X X
Nutmeg

India
The present arrival of Nutmeg BWP in Indian market is almost over. A severe shortage coupled with sharp increase
in demand pushed up the prices of Nutmeg and Mace to record heights. The price of Nutmeg has gone up 80-85%
higher than last season.

Usually BWP arrivals start by February but the unseasonal rains have destroyed the flowers hence, 30%
shortage is expected in the coming 2011season.

Sri Lanka
2010 BWP crop that started in February is drawing to close. Off season goods will be coming around 1 FCL
per month till November end. Oil yield from latter arrivals are low.

As per information the unseasonal rains have affected the crops in Srilanka leading to crop shortage in coming
seasons which starts from February. A team from Synthite will be visiting Srilanka for survey and would give com-
plete details after the field visit.

As there are no /less stocks at origins and with 3 month remaining for the new crops, to arrive in the market,
the Nutmeg prices are expected to move up further.

Material Harvest Period

Nutmeg Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
India X X X X
Sri Lanka X X X X
- Indonesia X X X X
- Papua X X X X
Cumin

Cumin (Jeera) prices have shown a bearish tone due to good weather and anticipating higher acreage in
current season.

Growing area has received good and well distributed rainfall in the current season. Sowing is expected to
commence during the month of November. Current year Jeera area is likely to go up if same weather condi-
tion prevails for next one month.

The farmers have been releasing their stocks into the market on anticipation of good production. At Unjha
market Jeera prices have eased in September month.

Material Harvest Period

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cumin Seed X X