Situation in India
Currently, a number of difficult circumstances are affecting the sourcing of products from India:
- the country has been hit massively by a new COVID-19 wave, with about 250,000 new cases currently being recorded every day. As a result, a number of lockdown measures have been taken to slow the spread of the virus. Our suppliers' psyllium and guar factories have also been affected, but the resulting delays are currently (still) limited.
- Due to a drastic increase in demand since the second half of 2020, which was partly caused by uncertainties regarding Covid-19 and corresponding stockpiling measures, sea freight rates have increased enormously. In addition, there is a shortage of empty containers, which continues to drive up prices.
- The trade discussions between India and China, which have not been very successful so far, are limiting the shipping companies' loading options with goods from India.
The forecast for the upcoming monsoon season suggests good rains. As new crop arrivals have slowed and are negligible, products are currently available primarily from stockists and farmers. Existing supply is expected to be able to meet demand and, in addition, carryover into next year will remain.
The closure of the APMC market due to increased COVID cases has severely impacted overall commodity supply. A massive price increase is expected as demand is good but little raw material arrives. Crops are caught up, but movement of commodities within the country is too slow due to closures in many areas. If additional closures in the country become necessary, the situation will further deteriorate.
Seed quality this year is much better than last year. In the organic sector, however, demand exceeds supply by a factor of two to three. A corresponding price increase can be expected.
We recommend to cover the demand for the next months shortly.