The market has experienced significant fluctuations since the start of the harvest, with prices changing frequently – on a daily or weekly basis.

There is an anticipated decrease of 40% in crop yield compared to the previous year’s record high volume. This reduction is unprecedented, as previous fluctuations in yield never exceeded 10%.

The decrease in yield is attributed to a drought at the beginning of the harvest, the full impact of which was unforeseen. While the decrease in volume could have been mitigated by carry- over stocks, the main driving factor behind price fluctuations is the poor quality of the crop. Specifically, there is a shortage of high-quality, green lots, which are in high demand among exporters in the spice market.

Additionally, the quality of oil production is also subpar, resulting in inconsistent yields. Coupled with daily price fluctuations, this makes it challenging to make competitive offers.

Recently, there was a slight decrease in price as spice exporters stopped purchasing low- quality lots, which was considered positive news.

However, the market remains highly volatile, prompting consideration of hedging strategies to mitigate risk.