April 04, 2026: Indian organic cassia prices on an FOB New Delhi basis are holding steady at around EUR 5.55 per kg, showing no movement over the past month as balanced near-term demand continues to align with consistent farmer selling. Despite emerging risks linked to weather volatility and logistics challenges across India’s spice belt, the market remains in short-term equilibrium. The current stability in cassia prices reflects a market that is neither under pressure from excess supply nor driven by aggressive export demand. Traders report that physical availability remains comfortable, while export inquiries have been steady but not strong enough to trigger upward price movement. As a result, FOB offers for organic whole cassia have remained unchanged across the last four weekly quotations, indicating a flat price curve and a wait-and-watch approach among buyers. However, underlying risks are gradually building. Weather conditions in key southern spice-producing regions are becoming increasingly uncertain, raising concerns about potential supply chain disruptions in the coming weeks. According to the India Meteorological Department, a yellow alert for isolated heavy rainfall has been issued across several districts in Kerala, with significant pre-monsoon showers already recorded in parts of the state. These developments could impact post-harvest handling, drying, and storage of spices, including cassia. At the same time, seasonal forecasts indicate a hotter-than-normal summer across large parts of peninsular India, including regions such as Karnataka, Andhra Pradesh, and Tamil Nadu. Elevated temperatures, combined with intermittent rainfall, may create unfavorable conditions for maintaining quality during storage and transit. For cassia, which is sensitive to moisture and requires controlled drying conditions, such weather patterns could lead to quality deterioration and logistical bottlenecks if disruptions intensify. Globally, cassia supply dynamics continue to be influenced by major producing countries such as Vietnam and Indonesia, which remain the primary sources in international markets. While export volumes from these origins have remained robust, there is a noticeable shift toward higher-quality grades, with tighter availability in select segments. This trend has helped establish a price floor in the global market, indirectly supporting Indian cassia offers and limiting any significant downside. India, although a secondary origin for cassia, benefits from diversification in global sourcing strategies, particularly as buyers look to mitigate origin risks amid tightening supplies in other spice categories such as pepper, cardamom, and nutmeg. Additionally, increased scrutiny over quality standards and pesticide residues in Indian spices has made certified organic lots more attractive, helping sustain premiums and reinforcing the current flat-to-firm pricing trend. Market participants note that while prices are stable for now, the short-term risk is tilted slightly to the upside. Any escalation in weather-related disruptions in Kerala and adjoining spice belts, coupled with firm freight costs and a potential pickup in buying activity, could begin to tighten supply and push prices higher toward late April. For now, the Indian cassia market remains calm, but with evolving weather patterns and external pressures building, traders are closely monitoring developments that could shift the balance in the weeks ahead.

April 03, 2026. India’s basmati rice export sector is facing mounting pressure as ongoing geopolitical tensions disrupt global shipping routes, leading to a sharp surge in logistics-related charges. Exporters have now approached the government seeking urgent intervention to mitigate financial losses and safeguard trade commitments. The Basmati Rice Farmers and Exporters Development Forum (BFDF) has raised serious concerns over rising detention, demurrage, and storage charges being imposed on consignments stuck at ports or in transit. Despite repeated appeals to shipping companies by exporters and trade bodies, the industry claims that there has been little to no corrective response. In a communication addressed to the Chairman of the Agricultural and Processed Food Products Export Development Authority (APEDA), BFDF Chairperson Priyanka Mittal emphasized that the issue has escalated beyond a routine commercial dispute and now poses a broader threat to India’s export ecosystem. She warned that continued inaction could result in contract breaches, order cancellations, and deterioration in the quality of perishable food cargo, including basmati rice. Additionally, exporters risk long-term damage to their credibility in global markets. The forum has urged the government to formally classify the current disruption as a force majeure event effective from March 1. It has also requested immediate directives to shipping lines, port authorities, terminal operators, and Inland Container Depots to suspend or waive all additional charges on shipments destined for affected West Asian regions. According to industry representatives, imposing penalties for delays caused by external geopolitical developments or operational decisions of shipping companies is unjustified and legally questionable. With exports at stake and global trade relationships under strain, stakeholders are calling for swift policy action to stabilize the situation and protect India’s basmati export industry.

March 31, 2026. In a significant step aimed at strengthening food security and ensuring price stability, the Government of India has extended the import policy for key pulses—including tur (pigeon pea), urad (black matpe), and yellow peas—until March 31, 2027. The decision, implemented through the Directorate General of Foreign Trade, comes at a crucial time as the earlier policy cycle concluded, offering much-needed continuity to both domestic and international markets. By extending the framework for another year, the government has provided clarity that is expected to support smoother trade operations and reduce uncertainty across the supply chain. Under the revised policy, imports of tur and urad will continue to remain duty-free. This approach is primarily intended to offset domestic production gaps, maintain adequate availability in the market, and prevent sudden price spikes for essential food commodities. In contrast, yellow peas will continue to attract an import duty of 30 per cent, reflecting a calibrated strategy to safeguard domestic farmers from cheaper imports while still allowing controlled inflow to meet demand. Additionally, the regulatory framework around yellow pea imports remains intact, with importers required to register their consignments under the government’s Import Monitoring System, ensuring transparency and better tracking of trade volumes. The industry has largely welcomed the move, viewing it as a stabilizing factor in an otherwise volatile global commodities environment. According to Bimal Kothari, Chairman of the India Pulses and Grains Association, the extension delivers long-term visibility and enables more efficient planning for stakeholders across the value chain. India continues to be one of the world’s largest consumers and importers of pulses, making policy consistency a critical factor in managing both domestic affordability and farmer welfare. With this extension in place, the government appears to be maintaining a careful balance between ensuring sufficient supply for consumers and protecting producer interests. Market estimates suggest that India’s pulses imports during the 2026–27 season are likely to surpass 5 million tonnes, underlining the continued importance of imports in meeting the country’s consumption needs.

In a major step toward strengthening India’s agri-logistics and reducing post-harvest losses, the Government of India is rolling out the “World’s Largest Grain Storage Plan in the Cooperative Sector”, aimed at building decentralized and scientific storage infrastructure across the country. The ambitious initiative, approved on May 31, 2023, is currently being implemented in pilot mode with a strong focus on empowering Primary Agricultural Credit Societies (PACS) and cooperative institutions. The plan seeks to address the chronic shortage of storage capacity for food grains by creating a network of modern agri-infrastructure at the grassroots level. This includes the development of warehouses (godowns), custom hiring centres, processing units, and fair price shops. The scheme is being executed through the convergence of multiple existing government programs such as the Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), Sub-Mission on Agricultural Mechanization (SMAM), and PM Formalization of Micro Food Processing Enterprises (PMFME). To make the initiative financially viable for cooperatives, the government has introduced several key reforms. Under the AIF scheme, PACS receive interest subvention on loans taken for warehouse construction, while AMI provides a subsidy of up to 33.33% for building storage facilities. The margin money requirement has been reduced from 20% to 10%, and construction cost norms have been significantly revised to reflect current market realities—₹7,000 per metric tonne in plain areas and ₹8,000 per metric tonne in northeastern regions. Additionally, cooperatives are eligible for extra subsidy support for ancillary infrastructure such as internal roads, weighbridges, and boundary walls. A major incentive under the plan is the extension of credit guarantee coverage under AIF from 2+5 years to 2+8 years. Combined with NABARD’s refinance support and 3% interest subvention, the effective interest rate for PACS is brought down to nearly 1%, making it highly attractive for grassroots institutions to participate. To ensure project viability, agencies such as the Food Corporation of India (FCI), NAFED, NCCF, and state food departments provide a 9-year hiring assurance for warehouses developed under the scheme. A structured Standard Operating Procedure (Margdarshika) guides implementation, starting from the identification of suitable PACS with adequate land by state cooperative departments, followed by approvals from District Cooperative Development Committees and preparation of Detailed Project Reports (DPRs). Once financing is secured through District Central Cooperative Banks, construction is expected to be completed within six months. The plan also integrates cold chain development under the Mission for Integrated Development of Horticulture (MIDH), enabling cooperatives to establish cold storage units, pack houses, and refrigerated transport systems to support fruit and vegetable supply chains. As per the latest status (January 20, 2026), 560 cooperative societies have been identified, out of which 426 have submitted DPRs and 120 projects have been completed, creating a total storage capacity of 72,702 metric tonnes. Rajasthan has emerged as a leading state with 91 completed projects and a capacity of 45,250 MT, followed by Maharashtra with 16 completed projects. Other states such as Gujarat, Uttar Pradesh, Assam, Karnataka, and Tamil Nadu have also made initial progress, while several states are yet to begin implementation. Additionally, central agencies have identified 378 districts across India with a storage gap of 46.92 lakh metric tonnes, highlighting the vast potential and need for expansion under the scheme. The initiative represents a transformative move toward decentralizing food storage, reducing wastage, improving farmers’ income, and strengthening rural economies. The information was shared by Union Minister for Home and Cooperation, Amit Shah, in a written reply in the Rajya Sabha.