India spices mostly down on arrivals, low demand

MUMBAI, Nov 21 (Reuters) - Indian turmeric futures opened lower on Friday as the new crop is expected to hit markets almost a month in advance, analysts said.

However, low inventories and improved demand from domestic and overseas buyers may restrict losses, they said.

Turmeric carry-over stocks for 2009 are seen at 500,000 bags, 58 percent lower from last year's 1.2 million bags, due to lower output in 2007/08, traders said last month.

At 10:19 a.m., the benchmark December contract NTMZ8 was down 0.52 percent at 3,830 rupees per 100 kg.

PEPPER:

Indian pepper futures also opened weak on low export demand and hopes of a higher output, analysts said.

Pepper exports from India during the April-October period fell 35 percent to 14,750 tonnes as the credit crunch hit major importing countries, the Spices Board said on Thursday.

However, tight supplies and dwindling warehouse stocks may support the market later in the day, analysts added.

The supply situation is likely to remain tight till the arrival of the new crop in December.