Indian Organic Cassia FOB New Delhi Remains Flat at EUR 5.55/kg as Weather Risks Build Across Spice Belt.

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.